China's Unstoppable Progress: IMF Partners with Beijing to Measure Digital Economy

The International Monetary Fund (IMF) and China’s National Bureau of Statistics have signed a new memorandum of understanding (MoU) to develop methods for measuring the digital economy, including artificial intelligence (AI), cloud computing, big data, and digital assets. This move is considered important given the rapid development of China’s digital economy, which is now one of the largest in the world. The agreement paves the way for China to align its national statistical system with the System of National Accounts 2025 (SNA 2025), the United Nations’ latest economic accounting standard. This new standard allows intangible assets, such as data, digital platforms, and AI technology, to be counted as part of a country’s economic strength. For China, the update is a strategic step to more accurately depict the contribution of the digital sector. Until now, a number of technology-based economic activities have not been fully reflected in gross domestic product (GDP) calculations or conventional economic statistics. The IMF stated that the MoU provides a framework for collaboration in implementing SNA 2025, covering the development of methodologies for measuring the digital economy, artificial intelligence, cloud computing, digital intermediation platforms, and data treated as economic assets. More accurate measurement of the digital economy is increasingly important as China has become a global leader in various technology sectors, from artificial intelligence and e-commerce to cloud-based computing services. The economic value of digital assets, which has been difficult to calculate, is expected to be reflected in the country’s official statistics. SNA 2025 itself is the first major revision to the global national accounting system in 17 years. The standard is designed to adapt economic calculation methods to the technological developments that increasingly dominate global economic activity. Through this update, China is not only seeking to improve the accuracy of its economic data but also to strengthen its position in the global technology race. For other countries, the ability to accurately measure the digital economy is becoming an important factor in understanding the new economic power born from AI, data, and digital services.