Birdwatch Note Rating
2025-05-01 15:30:50 UTC - HELPFUL
Rated by Participant: 0B8A848AF0695C1A4FF2FB3C98C766BDCE1E2A30858FC2EF13D8E0B46E72CC2C
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Original Note:
Imports do not reduce GDP. In the GDP formula they are subtracted because they are included in C, I and G, and the goal is to isolate domestic production. If imports hadn't surged, CIG would be lower. Imports are independent of domestic production. GDP = C+I+G +(X–M) https://fredblog.stlouisfed.org/2018/09/do-imports-subtract-from-gdp/
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