China's top statistician Li Deshui briefed the press on national economic performance in the year of 2005 at the press conference held by the State Council Information Office in Beijing on Wednesday.

China's economy grew 9.9 percent in 2005 on the back of improved efficiency, mild inflation and enhanced vitality, Li announced.

Preliminary estimation shows the gross domestic product (GDP) for the year stood at 18.23 trillion yuan ($2.26 trillion), said Li.

The rate was marginally lower than the 10.1 percent growth in 2004. 

Speech by Li Deshui, Commissioner of National Bureau of Statistics:

National Economy Maintains Stable and Fairly Fast Growth in 2005

National Bureau of Statistics of China

January 25, 2006

Commissioner of National Bureau of Statistics

Li Deshui

In 2005, under the correct leadership of the Central Party Committee and the State Council, regions and departments at all levels further enhance and improve the macro regulatory control measures by centering on the scientific approach to development pushing forward reforms and opening-up. National economic growth shows good momentum of rapid increase, improved efficiency, mild rise of prices and enhanced vitality.

According to preliminary estimation, the gross domestic product (GDP) for the year is 18,232.1 billion yuan, up by 9.9 percent in terms of comparable prices, which is a bit lower than the 10.1 percent growth in the previous year. Of this total, the value-added of the primary industry is 2,271.8 billion yuan, up by 5.2 percent; that of the secondary industry is 8,620.8 billion yuan, up by 11.4 percent; and that of the tertiary industry is 7,339.5 billion yuan, up by 9.6 percent. The quarterly GDP growth for the whole year are fairly balance, which are 9.9 percent, 10.1 percent, 9.8 percent and 9.9 percent respectively.

1. Agricultural Production Keeps Its Good Momentum with Grain Harvest. In 2005, the total output of grain is 484 billion kilograms, a year-on-year change of 3.1 percent or an increase of 14.6 billion kilograms; that of cotton is 5.7 million tons, a drop of 9.8 percent over the previous year. The output of oil-bearing crops and sugar maintain the same level a year ago. Though influenced by the “bird flu”, growth is seen in animal and husbandry industry, the output of meat is up 6.3 percent over the previous year.

2. Industrial Production Maintains Stable and Fast Growth. In 2005, the value-added of industrial sector is 7,619.0 billion yuan, a year-on-year change of 11.4 percent. Of this total, the value-added of industrial enterprises above designated size is 6,642.5 billion yuan, up by 16.4 percent, it is 0.3 percentage point lower as compared with that in 2004 (in December, it is 671.2 billion yuan, up by 16.5 percent); of which the growth of state-owned and state holding enterprises is 10.7 percent; that of the heavy industry increases by 17.0 percent and 15.2 percent growth for light industry. The sales ratio is 98.1 percent for industrial enterprises above the designated size. In 2005, the profit made by those enterprises is 1,436.2 billion yuan, an increase of 22.6 percent.

3. Fast Growth is Registered in Fixed Assets Investment in the Course of Structural Adjustment. In 2005, the total investment in fixed assets reaches 8,860.4 billion yuan, a year-on-year growth of 25.7 percent, with a drop of 0.9 percentage points over the previous year. Of this total, the fixed assets investment in urban areas is 7,509.6 billion yuan, up by 27.2 percent (1,183.7 billion yuan for December, up 24.2 percent); that in rural areas is up by 18.0 percent. Improvement is achieved in the structure of investment in different sectors. The investment in smelting and pressing of ferrous metals is up by 27.5 percent, and that in manufacture of non-metallic mineral products is up by 26.6 percent, they are 0.1 and 15.1 percentage points lower over that in the previous year. In terms of different regions, the investment in east area is up by 24 percent, that in central and west areas are up by 32.7 and 30.6 percent respectively.

4. Domestic Market Sales Accelerate. In 2005, the total retail sales of consumer goods reach 6,717.7 billion yuan, a year-on-year growth of 12.9 percent, or a real growth of 12.0 percent after deducting price factor, which is 1.8 percentage points higher than that in the previous year (685.0 billion yuan for December, up 12.5 percent). Of this total, the retail sales of consumer goods in urban areas increase by 13.6 percent and the retail sales at county and below county level is up by 11.5 percent. The growth of wholesale and retail sector is 12.6 percent, and the growth of catering industry is 17.7 percent. Of the sales by wholesale and retail business above designated size, the sales of communication equipment is up by 19.9 percent, that of household electric appliances and audio-video appliances increase by 14.8 percent, automobiles up 16.6 percent, and oil and oil products up 34.4 percent.

5. Foreign Trade Keeps Fast Growth and Foreign Direct Investment Maintains High Level. The total volume of imports and exports for the whole year reach 1,422.1 billion US dollars, a year-on-year growth of 23.2 percent. Of this total, the value of exports is 762.0 billion US dollars, up 28.4 percent; and the value of the imports is 660.1 billion US dollars, up 17.6 percent. China has a trade surplus of 101.9 billion US dollars, an increase of 69.9 billion US dollars over that in the year 2004. The foreign direct investment actually used in 2005 is 60.3 billion US dollars, a drop of 0.5 percent. The year-end foreign exchange reserves of China reach 818.9 billion US dollars, an increase of 208.9 billion US dollars as compared with that at the beginning of the year.

6. Rise of CPI is Moderate and Prices for Means of Production Drop from High Level. In 2005, the year-on-year growth of CPI is 1.8 percent, or 2.1 percentage points lower (1.6 percent for December). Of which, CPI in urban areas is up by 1.6 percent, and up by 2.2 percent in rural areas. In terms of different categories, the price of food is up by 2.9 percent, which is 7 percentage points lower over that in the previous year, of which, that of grain is up 1.4 percent, that of meat and meat products is up by 2.5 percent and 4.6 percent for eggs. The price for tobacco, liquors and related articles is up by 0.4 percent; for recreation, education, cultural articles and services, up by 2.2 percent; and for housing, up by 5.4 percent. Prices decline slightly for other products. The retail prices of commodities for the whole year are up by 0.8 percent (up 0.9 percent in December). The purchasing prices of raw material, fuel and power grow by 8.3 percent (5.0 percent in December), the producer’s prices of manufactured goods increase by 4.9 percent (3.2 percent in December), and the prices for investment in fixed assets rise by 1.6 percent. The sale prices for housing in 70 large and medium cities increase by 7.6 percent.

7. Income of Urban and Rural Households Continues to Increase. In 2005, the per capita disposable income of urban households is 10,493 yuan, a real growth of 9.6 percent after deducting price factor, or 1.9 percentage points higher over that in the previous year. The per capita net income of rural households is 3,255 yuan, a real growth of 6.2 percent, or 0.6 percentage point lower over that in the year 2004. By the end of 2005, the savings deposits of households amounts to 14.1 trillion yuan, an increase of 2.1 trillion yuan as compared with that at the beginning of this year. The registered urban unemployment rate by the end of 2005 is 4.2 percent, maintaining the same level as in the previous year.

The above figures show that national economic situation is fairly good in 2005. In particular, the stability of economic performance is strengthened to some extent, and progress is seen in a more balanced development. All these have led to the consummation of the first five-year programme of economic and social development in this new century, and laid a solid foundation for the stable and fast growth of the economy in the new year as well as the eleventh five-year programme period. The key problems existing in current economic performance are: weak agricultural base, insufficient staying power for grain production and increase of rural household income; over-sized investment in fixed assets with irrational structure; and extensive mode of economic growth.

Looking into the year 2006, the global economic environment and domestic situation are encouraging. As long as we carefully implement the various policies set by the National Economic Working Conference, fully carry out the scientific approach to development, correctly handle the relationships among reform, development and stability and effectively deal with various difficulties and risks, the national economy will maintain the good momentum of stable and fast development