Good Momentum of National Economy in the First Half of 2000

(News Release by National Bureau of Statistics)

July 18, 2000

In the first half of this year, a favorable turn is seen in national economic performance thanks to the series macro policies set by the central government and joint efforts made by regions and departments at all levels. While the quality of the performance is improving continuously, the trend of picking up is enhanced. According to preliminary estimation, the Gross Domestic Product in the first half of this year is 3,949.1 billion yuan, up 8.2% over the same period of last year at comparable prices. The growth rate is 0.6 percentage points higher than the same period of last year.

Main features of economic performance in the first half of 2000:

I. The growth of industrial production and the tertiary industry is the major locomotive for the rapid economic development.

Comparatively fast growth of industrial output, and improved industrial pattern. In the first half of this year, the value-added of the secondary industry is 2,136.5 million yuan, up by 9.7% over the same period last year. Of which, the value-added of industry is 1,900.5 billion yuan, up 9.9% (the growth of industry above scale is 11.2%) with its growth rate being 0.9 percentage points higher than the same period last year. The growth of state-owned and state holding industrial enterprises accelerates. In the first half of this year, the value-added of state-owned and state holding industrial enterprises is up 9.8%, its growth rate is 2.2 percentage points higher over the same period last year. The growth of heavy industry is faster than light industry, which is 12.2%, or 2.3 percentage points higher than light industry. The momentum of the output of major industrial products is strong. The growth of steel is 9.9%, cement 10.5%, ten kinds of non-ferrous metal 16.6%. The growth of crude oil and power generating is 17.9% and 9.9% respectively. The growth of yarn, cloth, silk products and costumes is ranging from 12.3% to 24.9%. The growth of high-tech products is even faster, the growth of micro-computers, semi-conductor integrated circuits, fax machines, optical telecommunication equipment and program-controlled switchboard ranging from 22.6% to 90.9%.

The development of the tertiary industry speeds up to some extent. In the first half of this year, the value-added of the tertiary industry is 1,362.6 billion yuan, up 8.1%. The growth rate is 1.3 percentage points higher than that in the same period last year. The main factors to stimulate the tertiary industry are: brisk market sales, expanded transportation capacity, large increase of selling of commercial housing and the flourishing tourism. The value-added of wholesale and retail trade is up 9.2%, or 2.4 percentage points higher than that in the same period last year. The growth of value-added of real estate is 8%, an increase of 4.6 percentage points. The growth of value-added of other service items is 8%, an increase of 3.1 percentage points.

Growth of agricultural production is comparatively stable. In the first half of this year, the value-added of the primary industry is 450 billion yuan, up 1.5% over the same period last year. The output of summer grain will reduce due to natural disasters. According to preliminary estimation, the reduction of summer grain will be 11 billion kilograms over the previous year, the decrease rate is 9.3%. Steady growth is kept in animal husbandry and fishery industry.

II. The growth of consumption and exports accelerates, the investment growth is stable. New pattern of economic growth is emerging.

Market sales is stable showing the trend of being brisk. In the first half of this year, the total retail sales of consumer goods is 1,624.8 billion yuan, up 10.1% over the same period last year, its growth rate is 3.7 percentage points higher as compared with the same period last year. The sales on urban market exceed that on rural market. The total retail-sales of consumer goods in cities is up 10.8% or 1.8 percentage points higher than that in rural areas.

The growth of investment in fixed assets is stable. Due to the implementation of proactive fiscal policies, steady growth is seen in the investment in fixed assets. In the first half of this year, the total investment in fixed assets is 1,017.6 billion yuan, up 11% over the same period last year. Of which, the investment by state-owned units and others is 753.8 billion yuan, up 12.1%; and the investment by urban and rural collectives and individuals is up 7.9%.

Exports increase by a large margin with increasing trade surplus.

Due to the active impact from better global economic situation and tax-refund policy set by the central government, fast growth is seen in foreign trade. In the first half of this year, the total volume of export is 114.5 billion US dollars, up 38.3% over the same period last year; and that of import is 102.1 billion US dollars, up 36.2%. China enjoys a trade surplus of 12.4 billion US dollars, or 4.4 billion US dollars more than that in the same period last year.

III. Rapid economic growth with improved quality.

Economic efficiency of enterprises is turning for the better obviously. In the first 5 months of this year, the comprehensive economic efficiency index of industrial enterprises is 107.3, it is 16.4 points higher than that in the same period last year. The profit and loss situation of enterprises is improving. In the first 5 months of this year, the profits made by enterprises is up 1.3 folds, the total losses occurred in loss-suffering enterprises is down by 7.7%.

The production and marketing situation is back to normal. In the first half of this year, the sales ratio of industrial products is 96.8%, an increase of 1.5 percentage points over the same period last year.

Balance of payment is good with increasing foreign exchange reserves. By the end of May, the foreign exchange reserves reach 158 billion US dollars, an increase of 3.3 billion US dollars as compared with that at the beginning of this year. The exchange rate of RMB is stable.

IV. Market prices are stable instead of declining, people's living condition is improving.

Market prices are picking up. After consecutive two years of decline, consumer prices stop declining. In the first half of this year, the consumer price index is slightly up 0.1% over the same period last year.

In the first half of this year, the per capita disposable income of urban residents is 3,208 yuan, up 8.7% over the same period last year, or a real growth of 7.7% after deducting price factors. The per capita cash income of rural residents is 1,013 yuan, up 1.5%, or a real growth of 1.8%.

General speaking, the economic performance in the first half of this year is better than expected. It has initially reversed the trend of low growth and showed the momentum of picking up steadily. This has illustrated that China' economy has successfully overcome the negative impact of the Asian Financial Crises, and the macro-regulatory control has achieved important results. However, the base is not sound, the internal vitality is insufficient. In the following period, we should continue to stick to the proactive fiscal policies; solidify the base for economic development; and pay attention to the reform and renovation of economic mechanism and system. At the same time, we should also enhance the enterprises reform and strategic adjustment; try hard to improve the policies, fund-raising and service environment for non-state-owned investment; enlarge investment channels; develop and strengthen the internal strength of enterprises to maintain the sustained, health and rapid growth of the economy.

Spokesman: Ye Zhen