China's Economic Growth is ACCELERATING, Not Slowing

Much is being made of the "slowdown" of the Chinese economy, and even of its 'slump' because its rate of growth has been throttled back from 10% annually to 7.5%.

So, yes, the growth RATE has fallen. But the ECONOMY itself is growing faster than ever before – an almost unbelievable feat.

At 7.5%, China will be growing much faster in the next ten years than in the previous decade. 

That’s because the economy was only $4 trillion, or half its current size ($8.5 trillion) ten years ago. 

10% of 4 trillion (2002 GDP) is 400 billion

7.5% of $8.5 trillion (2012 GDP) = $638 billion.

$638 billion is how much China will ADD TO ITS GDP in 2013.

In 2014, at 7.5%, it will add another $690 billion. And so on for 10 years.

How shall I put it? CHINA’S GROWTH IS ACCELERATING. 

[Just to be sure, I ran this by someone who is trained in such calculations. Here is his response: "Your conclusions are correct.  The percentage rate of growth of China's economy has moderated, but absolute GDP growth is accelerating because, as you correctly pointed out, we are calculating from a much higher base. 

All the 'slowdow' rhetoric emanates from the West, mostly the US, who takes pride in even false statistics. When China soon passes the absolute size of the US economy, this will probably disappear from the narrative because the Americans tend to dwell only on those measures where they can be seen as leader. When China's GDP is larger than that of the US, GDP will magically no longer be a useful indicator of anything; it will be the "quality" of GDP that is important.

 

This has already happened with patents, where China has passed #2 Japan and is nearing the US in applications. The noise today is that China applies for patents, but they are of "low quality", definition of which adjective is of course not provided".]