The indicator represents alteration of the market value for all goods and services meant for use and manufactured over a certain period of time in all economic sectors to be used on a country’s territory, exported or collected regardless the ethnic background of the employed production factors. It is the most complete indicator of the economic climate.
Effect of market
Considering the importance of China’s economy for the global economy, the index significantly influences the markets, including foreign exchange market. The GDP growth in China prompts a positive response from stock markets, with increasing demand for high-yield currencies while pushing down such safe haven status currencies as Dollar, Yen and Swiss franc. Furthermore excessive growth rates can be considered as a sign of China’s economy overheating, thus causing adverse reaction, because in this case there are higher chances that the Government of China will take actions of “cooling down” the national economy.