SteelOrbis Shanghai
According to the recent economic overview issued for the first three quarters of 2007 by China's National Bureau of Statistics, the country's economy has been developing at a steady and rapid pace. Macro control measures have been taking effect, with positive trends being observed such as fast growth, optimized structure, increased economic benefits and improved standards of living.
The preliminary statistics show that China's GDP for the first three quarters of 2007 totaled RMB 16.6043 trillion ($2.2198 trillion), up 11.5 percent year on year, an increase rate which was 0.7 percent faster compared with the corresponding period of 2006. GDP in the first quarter increased by 11.1 percent, rising in the second quarter by 11.9 percent and in the third quarter by 11.5 percent.
1. Industrial production continued to increase rapidly while business profits rose substantially. In the first three quarters of 2007, industrial added value increased by 18.5 percent year on year (18.9 percent in September) - 1.3 percent faster growth compared with the corresponding period of 2006. The industrial added value is defined as the industrial output value minus costs for intangible production, such as marketing, interest, fixed assets depreciation and maintenance and repairs. From January through August 2007, the total profits of all large-scale industrial enterprises amounted to RMB 1.5623 trillion ($208.9 billion), up 37.0 percent year on year.
2. Fixed assets investment remains high, though the growth rate has declined somewhat. In the first three quarters of 2007, total investment in fixed assets came to RMB 9.1529 trillion ($1.2236 trillion), increasing by 25.7 percent year on year, but constituting a drop in growth of 1.6 percent year on year.
3. Sales in the domestic market increased rapidly in the January-September period, and the consumer price index has continued to rise. In the period in question, total retail sales of consumer goods amounted to RMB 6.3827 trillion ($853.3 billion), up 15.9 percent year on year, i.e. 2.4 percent faster growth than in the corresponding period of last year. In the January-September period, the consumer price index increased by 4.1 percent year on year.
4. In the period in question, China's foreign trade increased at a relatively fast speed and its trade surplus also continued to rise. The total value of imports and exports reached $1.5708 trillion, up 23.5 percent year on year - a slowdown of 0.8 percent in the increase rate compared with January-September 2006. Breaking the above figure down into its import and export components, the total value of exports reached $878.2 billion, up 27.1 percent (0.6 percent faster growth); on the other hand, the total value of imports came to $692.6 billion, up 19.1 percent (2.6 percent slower). China's trade surplus for the given period was $185.7 billion, up $75.8 billion year on year. In the first three quarters of 2007, the value of actual implemented foreign direct investment was $47.2 billion, up 10.9 percent year on year, with a 1.5 percent lower increase rate than in January-September last year. At the end of September, the national foreign exchange reserve stood at $1.4336 trillion, up 45.1 percent year on year.
5. The incomes of both urban and rural inhabitants have increased substantially. In the first three quarters of 2007, the average per capita disposable income of China's urban population was RMB 10,346 ($1,383), which represents an actual growth rate of 13.2 percent after discounting the effect of price factors.
6. The growth rate of financial lending is still relatively rapid, while the problem of excess liquidity continues. At the end of September, broad money (M2) totaled RMB 39.3 trillion, up 18.5 percent year on year, which is 1.5 percent faster than last year's growth rate. At the end of September, total new loans issued by China's financial institutions came to RMB 3.3602 trillion, representing an increase of RMB 607.3 billion year on year.
China's National Bureau of Statistics points out that a number of structural problems and conflicts are still in evidence. Economic growth is still relatively rapid, price rises are too high, and there is considerable pressure to boost energy conservation and reduce pollutant emissions. Meanwhile, uncertainty regarding the prospects for global economic growth is also on the rise.