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Steady and Fast Economic Growth in the First Three Quarters of 2006

2006-10-19

Li Xiaochao
Spokesman
National Bureau of Statistics of China
19 October 2006

In the first three quarters of 2006, the national economic performance showed a pattern of fast growth, steady development and good quality. It is expected to be a fairly good kick-off for the eleventh five year program.

1. Gross domestic product kept fast growth. According to preliminary estimation, the gross domestic product (GDP) of China in the first three quarters of this year was 14,147.7 billion yuan, a year-on-year increase of 10.7 percent. It was 0.8 percentage point higher than that in the same period last year, or 0.2 percentage point lower than that in the first half of this year. Of this total, the value added of the primary industry was 1,557.0 billion yuan, up by 4.9 percent; the value added of the secondary industry was 7,049.6 billion yuan, up by 13.0 percent; and the value added of the tertiary industry was 5,541.1 billion yuan, up by 9.5 percent.

2. Another good harvest was seen in grain production. The total output of summer crops reached 113.8 billion kilograms, an increase of 7.4 billion kilograms, up by 7.0 percent. The output of early rice was 31.9 billion kilograms, maintaining the same level as in the previous year. The growing of autumn crops is encouraging. In the first three quarters of this year, the total output of pork, beef, mutton and poultry was 56.69 million tons with a year-on-year increase of 4.1 percent.

3. The growth rate of industrial production was fast. In the first three quarters of this year, the valued added by industrial enterprises above designated size was 6,222.1 billion yuan, a year-on-year growth of 17.2 percent, (growth in September was 16.1 percent with total value added of 775.4 billion yuan). It was 0.9 percentage point higher than that in the same period last year while 0.5 percentage point lower than that in the first half of this year. Of this total, the value added made by state-owned and state-holding enterprises went up by 12.2 percent; that of collective enterprises grew by 13.2 percent; that of the share-holding enterprises was 18.2 percent and that of enterprises funded by investments from foreign business or from HK SAR, Macao SAR and Taiwan province was up by 17.8 percent. In terms of heavy and light industries, the growth of the heavy industry was 18.2 percent while that of the light industry was 14.9 percent. In terms of products, the data showed that power generation and the production of coal were up by 12.9 percent and 11.7 percent respectively; the production of pig iron and rolled steel rose by 18.4 percent and 23.7 percent respectively; the production of microcomputers went up by 34.7 percent; the production of motor vehicles grew by 24.0 percent, of which the production of cars went up by 41.5 percent. In the first three quarters of this year, the production and sales went well with the sales ratio of industrial enterprises above designated size standing at 97.84 percent. In the first eight months of this year, the profits made by industrial enterprises above designated size stood at 1,132.7 billion yuan, a year-on-year increase of 29.1 percent or 8.4 percentage points higher over the same period last year.

4. Investment in fixed assets increased rapidly. In the first three quarters of this year, the investment in fixed assets of the country was 7,194.2 billion yuan, up by 27.3 percent. It was 1.2 percentage points higher as compared with the growth in the same period last year, or 2.5 percentage points lower than that in the first half of this year. Of this total, the investment in urban areas reached 6,188.0 billion yuan, up by 28.2 percent (It was 928.6 billion yuan in September, up by 23.6 percent.) or 0.5 percentage point higher over the same period last year. Of the investment in urban areas, that in real estate development was 1,290.2 billion yuan, up by 24.3 percent, or 2.1 percentage points higher than that in the same period last year. In terms of different industries, the investment in heavy industry was up by 30.2 percent over the same period a year ago. Of this total, the year-on-year growth of investment in coal mining and washing was 36.4 percent, that in the extraction of petroleum and natural gas was 19.3 percent, that in production and supply of electricity, gas and water was 16.1 percent and that in railway transportation was 107.0 percent. The year-on-year growth of investment in light industry was 36.5 percent. Of this total, the investment in manufacturing of foods was up by 48.3 percent, and in textile industry by 27.9 percent.

5. Sales on domestic markets grew fast and steady. In the first three quarters of this year, the total retail sales of consumer goods reached 5,509.1 billion yuan, a year-on-year rise of 13.5 percent (655.4 billion in September, up by 13.9 percent), or 0.5 percentage point higher over the same period last year (The real growth was 12.6 percent or 0.5 percentage point higher after taking away price factors). Of this total, the retail sales in urban areas reached 3,724.7 billion yuan, up by 14.1 percent, the retail sales at and below the county level stood at 1,784.5 billion yuan, up by 12.3 percent. In terms of different sectors, the sales by wholesale and retail businesses was 4,644.2 billion yuan, up by 13.5 percent and that by lodging and catering industry was 749.3 billion yuan, up by 15.8 percent. Among the wholesale and retail businesses above the designated size, the year-on-year growth of the retail sales of telecommunication equipment was 23.8 percent, and that of petroleum and petroleum products was 37.1 percent and a 26.0 percent growth was registered for motor vehicles.

6. Market prices were basically stable. China registered a year-on-year rise of 1.3 percent in the general consumer price level in the first three quarters of this year. (It was 1.5 percent growth in September.) Prices rose by 1.3 percent in cities and 1.2 percent in rural areas. In terms of commodity categories, prices for food rose by 1.8 percent, and prices for service items were up by 2.0 percent. Prices rise and fall were seen for other categories of commodities. Prices for tobacco, liquor and related articles grew by 0.4 percent; and that for household facilities, articles and services were up by 1.0 percent. Prices for medical care and personal utilities were up by 1.1 percent, and that of housing up by 4.7 percent. Prices for recreation, education and culture articles and related services went down by 0.1 percent, that of the transportation and telecommunication down by 0.2 percent and 0.8 percent decline for clothing. In the first three quarters of this year, the retail prices of commodities rose by 0.8 percent on a year-on-year basis. The producer's price for manufactured goods rose by 2.9 percent (3.5 percent growth in September). The purchaser's price for raw materials, fuels and power rose by 6.3 percent (6.9 percent growth in September). The selling prices of housings in 70 large and medium-sized cities went up by 5.6 percent (5.3 percent growth in September), which was 2.4 percentage points lower than the growth in the same period last year.

7. Foreign trade enjoyed rapid growth with a further increase of trade surplus. The total value of imports and exports for the first 9 months was US$ 1,272.6 billion, up 24.3 percent year-on-year, or 0.6 percentage point higher over the same period last year. Of the total, the exports was US$ 691.23 billion, up by 26.5 percent or 4.8 percentage points lower than the same period of 2005; and the imports was US$ 581.38 billion, up 21.7 percent or 5.7 percentage points higher. In the first 9 months of this year the trade surplus was US$ 109.85 billion. The total value of contracted foreign capital was US$ 132.8 billion, up by 1.9 percent while the actually utilized capital was US$ 42.6 billion, down by 1.5 percent. By the end of September, China registered a total of US$ 987.9 billion in foreign exchange reserves, an increase of US$ 169.0 billion as compared with that at the beginning of this year.

8. Urban and rural residents' income increased rapidly. In the first three quarters of this year, the per capita disposable income of urban residents was 8,799 yuan, a year-on-year growth of 10.0 percent in real terms after deducting price factors, or 0.2 percentage point higher than that in the same period last year. The per capita cash income of rural residents was 2,762 yuan, a year-on-year growth of 11.4 percent in real terms, maintaining the same level as that in the same period last year.

Major problems existing in economic life are: the achievements brought by macro-regulatory control should be further enhanced, the structural contradictions are still outstanding, natural disasters in selected areas are severe and pressures due to resources and environment are considerably high. As long as we adhere to the scientific approach to development, carefully implement various policies set by the central government, continue to strengthen and improve macro-control, push forward structural adjustment and change the pattern of economic growth and deepen various reforms, the national economy will maintain the good momentum of steady and fast growth.

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