As we receive news of an earthquake, flood or any natural disasters it is usually followed by a list of the number houses destroyed and the number of people missing or dead. From these numbers, we are likely to assume an immense cost to the affected country and some time for rebuilding before things are back to normal. But what if things don’t get back to normal but become better than before the disasters? Although natural disasters cause a great deal of damage disasters are also more likely to promote growth rather than retard it. We will look at the paradox of how natural disasters can lead to economic growth using the Wenchuan earthquake in China on May 12, 2008 as a case to try to determine the effects it will have on economic growth.