That growth of the labor force will raise potential GDP by only about 0.5 per year.

But China s GDP growth has already started to fall towards its potential level, which, according to the consensus view, is around 9 .

But wages have grown at a far slower pace than GDP.

This will raise actual output to the level of potential output, thereby closing the output gap.

Brazil s GDP grew by only 1 last year, and may not grow by more than 2 this year, with its potential growth barely above 3 .

Potential output has also been called the natural gross domestic product.

Over the last 30 years, in terms of the GDP growth rates, China has grown at twice the rate of India.

The growth of potential GDP will reflect the structural rise of the labor force, the increase in the capital stock, and the improvement in multifactor productivity (i.e., the change in the output that results from improvements in technology rather than from increases in labor and capital.)

Unit labor costs have risen, and potential output growth has fallen.

Real GDP growth in 2007 was 6.0 per cent.

Only 11 of its China beating nominal GDP growth between 2003 and 2011 was due to growth in real (inflation adjusted) output.

The US is adjusting structurally and generating real (inflation adjusted) GDP growth (though well below its potential annual rate of 3 3.5 ).

Even an economy with an overall budget deficit will have a declining government debt GDP ratio if the growth rate of its nominal GDP exceeds that of its debt.

Assuming slower growth in the labor force than in the past decade, no rise in productivity due to capital accumulation, and a decline in multifactor productivity growth to its pre 2000 average implies that annual potential GDP growth will be only 1.4 .

That is, China s annual GDP growth rate would drop by four percentage points if its exports did not grow at all.

Argentina s long term GDP growth has been disappointing.

Monetarists insist that economies experience inflation when money supply growth persistently exceeds output growth.

The economy grew after 1982, achieving an annual average output growth of more than 3 between 1983 1985.

China s GDP growth fell dramatically, owing to the collapse of external demand.

As of this year, 1 of GDP growth is consistent with more than 3.5 of credit growth.

In 2004, the economy experienced 6.4 GDP growth and 7.1 in 2007, its fastest pace of growth in three decades.

If actual output is below potential output, this means that total spending is insufficient to buy what the economy can produce.

But, over the same period, annual GDP growth has averaged a modest 3.5 , and productivity growth has slipped into negative territory.

Periods in which trade grows at a slower pace than output are rare, and reflect severe strain on the global economy s health.

Historically, inflation in China has followed GDP growth with a lag.

The money supply has grown significantly faster than output for decades.

After many years of outperformance, GDP growth has slowed sharply.

GDP annual average growth for the period of 1995 2002 was 5.1 .

GDP growth registered more than 10 per year in 2006 and 2007.

Like Brazil, India experienced a spurt of output growth after liberalizing its economy in the 1990 s indeed, until a few years ago, GDP growth was approaching Chinese style rates.

Since 2008, banking sector credit growth in China has been among the fastest in the world, far outpacing GDP growth, and China s total debt has risen from 130 of GDP to 220 of GDP.

The key to restoring China s GDP growth is, therefore, returning fixed asset investment growth to at least 25 .

Since the second quarter of 2009, US annualized real GDP growth has averaged 2.4 .

Moreover, output growth in the United States was not economically sustainable.

China s GDP growth, which relies heavily on credit, will take a hit.

)The GDP grew after 1996 at an annual rate that averaged 3.2 real growth.

As a result, it is possible that the fall in investment growth will reverse the declining external surplus GDP ratio in 2012, unless the global economy deteriorates further and or the Chinese government launches a new stimulus package.

This generates liquidity, which then stimulates GDP growth.

Rapid output growth without equally rapid capital stock or employment growth must have reflected rapid productivity growth.

After years of double digit GDP growth, the PRC s economy is decelerating.

In Bhutan, the economic challenge is not growth in gross national product, but in gross national happiness (GNH).

BEIJING China s GDP growth this year may approach 10 .

The GDP growth rate was only 1.7 in 2011, and it is not significantly higher now.

From now on, consumption must grow much faster than GDP.

Indeed, annual GDP growth has fallen by five percentage points since 2010.