DailyMarkets.com - Foreign Trade’s Impact On GDP |
| Posted: 05 May 2013 12:51 PM PDT The treatment of foreign trade statistics in the GDP estimates is tricky, confusing, and may contribute to an unwarranted aversion to imports. The reason is that we add categories of spending to get to GDP, but we subtract imports. For example, we add Consumption spending to Investment spending to Government spending to spending on Exports, but we subtract spending on Imports to get: GDP = C + I + G + X – M. It's easy to make the leap from imports being subtracted to get to GDP to … [visit DailyMarkets.com to read more] or compare Credit Card Rewards or Best Credit Cards |
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