Goldman Sachs China economist Yu Song in a client note:

  • Says that the Statistics bureau’s plan to adjust the methodology it uses to calculate GDP is likely to boost real growth by 0.1 to 0.2%
  • Making it easier for the government to reach growth target of “around 7.5%” set for 2014
  • Changes include adopting latest version of international national account standard that will treat R&D as investment instead of cost; it may be incorporated in 2014 annual GDP to be announced in january
  • New economic census is unlikely to have meaningful impact on 2014 growth

Also, Nomura concurs, saying that the new GDP calculation may add 0.1 ppt to growth

I suppose adding 0.1 to 0.2% to the GDP does indeed make it easier to reach the growth target. By 0.1 to 0.2% … right? Sheesh ….