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#GDPbkser 1/n Whenever the GDP base is updated for a fast growing economy, the weights on fast growing sub-sectors increase & on slow growing sub-sectors decrease. The new series therefore shows lower growth rt than old in yrs prior to new base & raises it for yrs post new base.2
#GDPbkser (2/n): If memory serves, historically avg GDP gr rt in yrs btwn old & new base yr has been adjusted down by an avg of -0.5% to -0.75%! The current revision is ~2x the historical avg! Thus reweighting would have lowered past GDP gr rt from 8% to 7% to 7.5%! ...3/
#GDPbkser (3/n) So what needs greater analysis is the rest of decrease in GDP growth rate ie the reduction not explained by re-weighting (~-0.65% ). Some points made by critics are either only partially valid or invalid. (a)Comparing chng in nominal gr with chng in real gr...4/
