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4- Measured in current US dollars China’s GDP is smaller than that of the US; but...

4- Measured in current US dollars China’s GDP is smaller than that of the US; but the total investment expenditures in China, measured in US dollars, is much higher in China. Why is that?

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Answer #1

The total investment expenditure is higher in China because of rising capital expenditure and declining savings rate and depreciation of Yuan in conparison to US Dollars which makes it higher than US.

However the GDP is lower than that of US because of larger consumption pie and government spending and net exports which cumulatively raise the overall GDP of US.

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