By Zhao Huanxin (chinadaily.com.cn/Xinhua)
Updated: 2007-07-19 10:00

Economy keeps steady, fast growth (full statement)

National Bureau of Statistics of China
Li Xiaochao, spokesman

19 July 2007

In the first half of 2007, the central government adopted a series of macro-control policies aiming at the outstanding contradictions and problems existing in economic performance, resulting in a steady and fast economic growth, featured as: rapid economic growth, improved efficiency, harmonized structure and more substantial benefits to the masses.

According to preliminary estimation, the gross domestic product (GDP) of China in the first half of this year was 10,676.8 billion yuan, a year-on-year increase of 11.5 percent, which was 0.5 percentage point higher. The first quarter GDP growth was 11.1 percent, and that for the second quarter was 11.9 percent. Of this total, the value added of the primary industry was 947.0 billion yuan, up by 4.0 percent; the value added of the secondary industry was 5,545.4 billion yuan, up by 13.6 percent; and the value added of the tertiary industry was 4,184.4 billion yuan, up by 10.6 percent.

1. Agricultural production attained another bumper harvest with the unit output of summer grain recorded all round high. According to the preliminary estimation, the total output of summer grain reached 115.34 million tons, an increase of 1.46 million tons or an increase of 1.3 percent representing 4 straight years of good harvest. The unit production of summer grain grew by 1.1 percent. The output of early rice is expected to have another bumper harvest. The planting areas for cotton continued to increase, the ratio of high quality farm products further improved. In the first half of this year, the output of pork, beef, mutton and poultry was 36.52 million tons, a year-on-year growth of 1.3 percent.

2. Industrial production accelerated its growth with a big margin of profits made by enterprises. In the first half of this year, the total value added of the industrial enterprises above designated size was up 18.5 percent year-on-year growth (19.4 percent in June), or 0.8 percentage point higher than that in the first half of 2006. Of this total, the growth in the first quarter was 18.3 percent, and it was 18.7 percent for the second quarter. In terms of different ownerships, the value added of state-owned and state-holding enterprises went up by 14.0 percent, a year-on-year growth of 2.2 percentage points. That of the share-holding enterprises grew by 20.0 percent, or 1.3 percentage points higher; that of the collective enterprises increased by 13 percent, a drop of 0.1 percentage point; that of the private enterprises grew by 26.6 percent, a decrease of 0.6 percentage point; and 17.9 percent growth for enterprises funded by investments from foreign businesses or from HK SAR, Macao SAR and Taiwan province, or a drop of 1.1 percentage points. Among the 39 industrial divisions, the growth of 24 divisions was faster than that in the first quarter, one division maintained the same growth and the other 14 divisions registered drop of growth rate. Mainly the machinery and light industry enjoyed rapid growth and the drop of the growth rates was mainly found with those high energy consumption industries. Rapid growth was scored in the delivery value of export products while the growth rate slowed down. In the first half of this year, the delivery value of export products made by industrial enterprises at and above designated size was 3,285.9 billion yuan, a year-on-year growth of 21.7 percent, with its growth rate declining by 3.2 percentage points over that in the same period of last year, or 2.0 percentage points lower than that in the first quarter of this year.

In the first five months of this year, the profits made by industrial enterprises above designated size stood at 902.6 billion yuan, a year-on-year increase of 42.1 percent, or 16.6 percentage points higher than that in the same period last year. Of this total, that of the state-owned and state-holding enterprises went up by 42.3 percent, that of the collective enterprises increased by 24 percent, that of the joint stock enterprises increased by 23 percent, that of the share-holding enterprises grew by 39.5 percent and 38.6 percent growth for enterprises funded by investments from foreign businesses or from HK SAR, Macao SAR and Taiwan province. The profits made by private enterprises went up by 48.6 percent.

3. The investment growth is running at a high level and the investment in central and western areas maintained rapid growth. In the first half of this year, the investment in fixed assets of the country was 5,416.8 billion yuan, up by 25.9 percent, or a drop of 3.9 percentage points as compared with the growth in the same period last year, or 2.2 percentage points higher than that in the first quarter of this year. Of this total, the investment in urban areas reached 4,607.8 billion yuan, up by 26.7 percent (28.5 percent in June), a drop of 4.6 percentage points year-on-year, or 1.4 percentage points higher than that in the first quarter of this year; that in rural areas was 809.0 billion yuan, up by 21.5 percent. In terms of different industries, the investment in the primary industry was up by 37.5 percent, the investment in the secondary industry went up by 29.0 percent and 24.6 percent in the tertiary industry. In the first half of this year, the investment in real estate development was 988.7 billion yuan, up by 28.5 percent, or 4.3 percentage points higher than that in the same period of last year, or 1.6 percentage points higher than that in the first quarter of this year.

In the first half of this year, the complete investment in central and western urban areas amounted to 1,111.1 billion yuan and 1,009.4 billion yuan respectively, the year-on-year growth of 35.6 percent and 30.2 percent, all topping that of the eastern area which stood at 22.3 percent.

4. Sales on domestic markets accelerated steadily and consumer prices rose due to structural factors. In the first half of this year, the total retail sales of consumer goods reached 4,204.4 billion yuan, a year-on-year rise of 15.4 percent (up by 16 percent in June), representing the highest growth since 1997. Of the total, the retail sales in the first quarter went up by 14.9 percent, and that in the second quarter was 15.8 percent. In terms of different areas, that in cities reached 2,852.5 billion yuan, up by 15.9 percent, the retail sales at and below county level stood at 1,351.9 billion yuan, up by 14.3 percent. In terms of different sectors, the sales by wholesale and retail businesses, lodging and catering industry was up by 15.2 percent and 18.0 percent respectively, and the others by 5.3 percent.

In the first half of this year, the year-on-year consumer prices grew by 3.2 percent (year-on-year growth in June was 4.4 percent, or 0.4 percent growth over that in May), 1.9 percentage points higher than that in the same period last year. In terms of commodity categories, prices for food rose by 7.6 percent, of which grain went up by 6.4 percent, eggs by 27.9 percent, and meat and poultry and related products up by 20.7 percent. Prices for other categories of commodities either maintained the same level or had slight rise. In the first half of this year, the retail prices of commodities rose by 2.4 percent year on year (a 3.2 percent growth in June). The producer’s prices for manufactured goods rose by 2.8 percent (2.5 percent growth in June). The purchaser’s prices for raw material, fuel and power rose by 3.8 percent (by 3.4 percent in June).

5. Foreign trade increased rapidly and the utilization of foreign capitals increased steadily. In the first half of this year, the total value of imports and exports was US$ 980.9 billion, up 23.3 percent year-on-year, or 0.1 percentage point lower, and it maintained the same level as compared with that in the first quarter of this year. Of the total, the value of exports was US$ 546.7 billion, up by 27.6 percent, and the value of imports was US$ 434.2 billion, up 18.2 percent. The trade surplus was US$ 112.5 billion, up by US$ 51.1 billion. The total value of foreign direct investment actually utilized was US$ 31.889 billion, up by 12.2 percent. At the end of June, China registered a total of US$ 1,332.6 billion in foreign exchange reserves, an increase of US$ 266.3 billion over the end of 2006.

6. Urban and rural residents’ income kept fast growth with record high growth rate. In the first half of this year, the per capita disposable income of urban residents was 7,052 yuan, a real growth of 14.2 percent year-on-year, or 4 percentage points higher than that in the same period last year. The per capita cash income of rural residents was 2,111 yuan, an increase of 314 yuan, a year-on-year growth of 13.3 percent in real terms, an increase of 1.4 percentage points, or 1.2 percentage points higher than that in the first quarter of this year. The momentum of urban and rural residents’ income growth was rarely seen in recent years.

7. Money supply grew steadily and the growth rate of savings deposits of residents slowed down. By the end of June, the broad money (M2) was 37.8 trillion yuan, a year-on-year growth of 17.1 percent, which was 1.4 percentage points lower than that in the same period of last year, or 0.2 percentage points lower than that in the first quarter of this year. The narrow money (M1) was 13.6 trillion yuan, a year-on-year rise of 20.9 percent, which was 7.0 percentage points higher, or 1.1 percentage points higher than that in the first quarter of this year. The cash in circulation (M0) was 2,688.1 billion yuan, up by 14.5 percent, or 2.0 percentage points higher year-on-year, or 2.1 percentage points lower than that in the first quarter of this year. The outstanding loans of all financial institutions stood at 25,079.3 billion yuan, a growth of 16.5 percent as compared with the same period of last year. Outstanding deposits of all financial institutions reached 36,936.8 billion yuan, a growth of 16.0 percent, of which the growth of household savings deposit was 9.4 percent.

The system and structural problems existed in economic performance are still outstanding, in particular, the unbalance balance of payments, the high price rise for food and the high pressure on energy consumption and pollutant emission reduction. In the future, we will adhere to the scientific approach to development to guide the economic and social development. We will further enhance and improve the macro-control, and put into practice various policies set by the central government. Efforts will also be made to adjust the structure, change the pattern of economic growth, deepen reform which will lead to the realization of a sound and rapid growth of the national economy.

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