Abstract: A method of complete decomposition of interactive terms was proposed so as to develop a new deviation analysis model via SDA which is available to analyze the nonlinearity efficiently, thus solving the problem of the inconsistency of interactive terms in the SDA-based input-output deviation analysis model. The new model was applied to the annual input-output data in 1997, 1999, 2000, 2002 and 2007 to analyze China's economic growth in view of the industrial structure, intrinsic structure of finished products and the direct and interactive effects of finished product on China's primary, secondary and tertiary industries. The conclusion thus drawn is in conformity to the economic situation from 1997 to 2007 in China and of significance to the forecast of China's economic development trend and relative policy making.