The Economic and Social Development in the First Three Quarters

In the first quarters of this year, China encountered SARS epidemic situation and serious droughts and water logging disasters. Under the strong leadership of the CPC Central Committee and the State Council, the people of the whole country were of one mind and achieved stage success of SARS prevention and treatment by strengthening economic construction at the same time. The economy grew at a fast rate, various trades developed the fastest in the last few years as shown with indicators, and the production, demand and efficiency were developing in a harmonious way.

1. The national economy enjoyed fast growth. The GDP completed in the first three quarters is RMB 7911.4 billion Yuan, up by 8.5% over the same period of the previous year in comparable prices, and the growth rate is up by 0.6% over the same period of the previous year. Wherein the GDP in the 3rd quarter grew by 9.1%, and the growth rate was up by 2.4% over the 2nd quarter, which presents that the national economy had got rid of the influence of SARS and restored fast growth. In view of different industries, the increased value of the first industry was RMB 948.7 billion Yuan, up by 2.8% at the same growth rate as last year, that of the second industry was RMB 4369.3 billion Yuan, up by 11.8%, and the growth rate was 1.8% higher, and that of the third industry was RMB 2593.4 billion Yuan, up by 5.4%, and the growth rate was down by 1.2%.

2. The agriculture grew steadily during structural adjustment. The planting structure was further adjusted, the cultivation area of foodstuff and sugar crops was reduced and that for cotton and vegetables was increased. Influenced by the reduction of planted area and natural disasters, it is predicted that the overall output of foodstuff, oil crops and sugar crops shall be reduced, but the stock raising, fishery and Forestry production remained firm growth, and the cotton output was almost the same as last year.

3. The industrial production enjoyed fast and effective growth. In the first three quarters, the above-scale industries completed an increased value of RMB 2897.5 billion yuan, up by 16.5% over the same period of the previous year, and the growth rate was 4.3% higher, which is the fastest growth since 1995. Various economic sectors grew comprehensively. Wherein the state-owned enterprises and state holding enterprises grew by 14.3% over the same period of the previous year, collective enterprises grew by 11.7%, joint ventures grew by 17.9%, and enterprises with foreign investment or Hongkong-Aomen-Taiwan investment grew by 19.6%. The heavy industry grew faster than the light industry. During the first three quarters, the heavy industry grew by 18.4% and the light industry grew by 13.9%. In view of industries, the electronic communication equipment manufacturing, electric machinery and facilities manufacturing, transport and communication facilities manufacturing, metallurgical industry and chemical industry contributed 50.7% to the overall industrial growth, which drove the industrial growth up by 8.4%. Among prime products, the semiconductor integrated circuit grew by 36.4% over the same period of the previous year, automobile production grew by 35.7% rough coal grew by 16.8%, power generation grew by 15.6%, and steel and steel products grew by 21.6% and 19.4% respectively.

The enterprise profits grew in large scale. From January to August, the industrial enterprises realized a profit of RMB 501.5 billion yuan at break-even point, up by 52.3% over the same period of the previous year, wherein the state-owned and state holding enterprises realized a profit of RMB 253.8 billion yuan at break-even point, up by 66.6% over the same period of the previous year. Among the 39 industrial broad categories, the profit of 38 was up over the same period of the previous year. The deficit of unprofitable firms was RMB 79.1 billion yuan, down by 5.3% over the same period of the previous year. The industrial production and sales rate was kept at a high level which reached 97.7%, up by 0.11% over the same period of the previous year.

4. The fixed investment grew violently. The fixed investment of the whole society in the first three quarters was RMB 3435.1 billion yuan, up by 30.5% over the same period of the previous year, and the growth rate was 8.7% higher. Wherein the state investment and other types of investment was RMB 2651.3 billion yuan, up by 31.4%, and the collective and individual investment was 783.9 billion yuan, up by 27.6%. Among the state investment and investment of other economic types, the capital construction investment was 1378.1 billion yuan, up by 29.1%, the renovation and reformation investment is 514.9 billion yuan, up by 37.2%, and the real estate investment is 649.5 billion yuan, up by 32.8%. In view of financial sources, the self-raised fund, foreign fund, and domestic loan of enterprises grew faster than budgetary funds, and the independent investment growth mechanism was further improved.

5. The foreign trade presented a structure with huge input and huge output, and utilization of foreign capital kept faster growth. In the first three quarters, the total export-import volume was USD 606.3 millions, up by 36.2% over the same period of the previous year, and the growth rate was 17.9% more than that of the same period of the previous year. Wherein the export volume was USD 307.7 billions, up by 32.3%, and the import volume was USD 298.6 billions, up by 40.5%. The export volume was USD 9.1 billions more than the import volume, down by USD 10.9 billions over the same period of the previous year. The general trade export growth was little higher than the processing trade, 32.9% and 31.3% respectively. The export volume to principal trade partners was enhanced comprehensively, wherein the export to ASEAN, America and Australia grew by 30%, and that to EU and Russia grew by 40%.

In the first three quarters there were 29,539 new contract items with foreign investment, up by 18.6% over the same period of the previous year, the contracted foreign fund was USD 792 billions, up by 36%, and the foreign investment utilized directly was USD 402 billions, up by 11.9%.

The state's foreign exchange reserve was USD 383.9 billions by the end of September, USD 97.5 billion more than that at the beginning of the year.

6. The sales on domestic market enjoyed stable growth. The total volume of retail sales of social consumable was RMB 3269.9 billions, up by 8.6% over the same period of the previous year, and the growth rate was almost the same as that in the last year wherein the growth rate was 9.7% in the 3rd quarter, up by 3% over the 2nd quarter, almost the same level before SARS attack. The growth of sales in urban areas was distinctively higher than that in rural areas. Wherein the total volume of retail sales of urban consumer goods was RMB 2133 billions, up by 9.8%, and that in county and below was RMB 1137 billions, up by 6.4%. The retail sales of the food industry were RMB 418.6 billion yuan, up by 9.4%. New consumption concerns were rising consistently. Among the wholesale and retail trade industries above norm in the whole country, the retails sales of automobiles grew by 77.5% over the same period of the previous year, that of communication facilities grew by 74%, that of construction and decorative materials grew by 46.6%, and that of petroleum and products grew by 38.7%. In the first three quarters, the sales area of commercial housing grew by 35.9% over the same period of the previous year.

7. The market price kept stable basically. The resident consumption price grew by 0.7% in the first three quarters. Wherein the food price rose by 2.2%, driving the overall price level up by 0.7%, and the service item price rose by 2.2%, driving the overall price level up by 0.5%. Prices of other commodities mostly dropped, wherein the clothing price dropped by 2.4%, the household equipment and service price dropped by 2.7%, and the traffic and communication price dropped by 2.1%. The commodity retail price dropped by 0.5% in the first three quarter over the same period of the previous year s.

The ex-factory price of industrial goods and price of producer goods were down first and up later. The ex-factory price of industrial goods rose by 2.4% over the same period of the previous year in the first three quarters, 3.6%, 2.3% and 1.4% respectively. Among the primary products, the crude oil price rose by 24.9%, the ex-factory prices of gasoline, kerosene and diesel oil rose by 21.4%, 20% and 20.8% respectively, the plate iron, sheet steel and wire stock prices rose by 20.3%, 13.1% and 14.3% respectively, and the ex-factory price of the non-ferrous smelting and extrusion rose by 4.1% over the same period of the previous year. The purchase price of raw materials, fuels and power rose by 4.5%.

8. The income of urban and rural residents kept on growing. The income of urban residents held over a fast growth in the first three quarters, the disposable income per capita was RMB 6347 yuan, up by 9% over the same period of the previous year. The income of rural residents kept a fast growth rate due to quickened agricultural structure adjustment, rising of farm prices and reduced burdens of farmers although it was affected by SARS. The cash income per capita of farmers was RMB 1802 yuan in the first three quarters, up by 3.8%.

On the whole, China's economy kept a sustained, fast and healthy development trend in the first three quarters, the industrial production, fixed investment, and import and export are expected to be sound, and the micro economy grew violently and independently. While there are still quite a few problems in the economic life, and such contradictions as difficult income increase of farmers and difficult employment are still distinct, the credit scale is growing too fast during economical operation, finished goods stock and receivable accounts are accumulated, and the imbalance between investment and consumption, urban areas and rural areas, industrial production and energy and transportation is aggravated, which need to be settled with forceful measures.

Looking forward to the whole year, we shall realize the desired objects of economic and social development established at the beginning of the year so long as we implement the spirit of the 16th National Congress of the CCP and its 3rd Plenary earnestly and so long as we work in a solid manner confidently.