First, after the completion of the investment project, the products produced did not meet the expected market demand, and a large number of products piled up, and the funds could not be recovered, resulting in a serious waste of production materials. "Excessive" at this level refers to excessive investment relative to market demand.

Second, the investment scale is too large, which exceeds the financial capacity, resulting in the failure to complete the investment on schedule and form the expected production capacity. The "excess" at this level is the excess of investment scale relative to financial burden.

Expand the data A country's GDP has grown substantially, reflecting that the country's economy is booming, national income is increasing, and consumption power is also increasing. In this case, the central bank may raise interest rates and tighten the money supply. The good performance of the national economy and the rise in interest rates will increase the attractiveness of the country's currency.

It shows that the country's economy is declining and its consumption capacity is decreasing. At this time, the central bank may cut interest rates again to stimulate economic growth. Falling interest rates and sluggish economic performance will reduce the attractiveness of the country's currency. Therefore, high economic growth rate will push up the exchange rate of the country's currency, while low economic growth rate will cause the exchange rate of the country's currency to fall.

Baidu Encyclopedia-Gross Domestic Product