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To: dangus

Another interesting point is exports less imports. If exports only decline 15% and imports decline 25%, this is a positive for the GDP percentage. This is happening, yet production is declining everywhere.


2 posted on 08/17/2009 8:22:23 PM PDT by spyone (ridiculum)
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To: spyone

Not really: the GDP measures exports and domestically sold goods. Imports really only figure into the matter because of adjustments to initial figures: The government tracks sales to get a measure of how much commerce is going on, to help them make an initial estimate of the GDP. When they can, they exclude imports, so if imports decline faster than expected, the initial estimate is raised. But this does not mean that declining imports create a higher GDP; it only means that the government has discovered that poorer sales of exports led them to falsely suppose that domestic production was weaker than it really was.


4 posted on 08/17/2009 8:30:39 PM PDT by dangus (I am JimThompson)
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