SteelOrbis Shanghai
China's economy sustained its fast and stable growth in the first six months this year.
1. GDP is growing fast and stable. GDP increased 10.9 percent to RMB 9.1443 trillion ($1.1445 trillion) in the first six months. The growth rate is 0.9 percentage point higher than that of last year.
2. Agricultural production is in a good state. With the summer grain crops seeing good harvest for the third consecutive year, the total
production amounted to 113.8 billion kilograms, up 7 percent.
3. Industrial production is growing rapidly. In the first half year, the value-added of large and medium scale industry totaled RMB 3.968 trillion ($496.6 billion), up 17.7 percent year on year.
Broken down into various products, the energy output and raw coal
production increased by 12 percent and 12.8 percent respectively; steel
production increased by 25.8 percent; that of micro electronic computer and program control exchange increased by 34 percent and 21.5 percent respectively;
automotive 27.8 percent, among which the cars accounted for 53.2 percent.
The sales ratio of large and medium scale industry reached 97.4 percent in the first half year. The industrial profits rose sharply. In the January-May period, the industry of large and medium scale made a profit of RMB 629.4 billion ($78.8 billion), up 25.5 percent year on year, 9.7 percentage points higher in growth rate compared with the same period last year.
4. Fixed assets investment is growing sound. In the first six months, the total fixed assets investment increased 29.8 percent to RMB 4.2371 trillion ($ 530.3 billion), 4.4 percentage points higher in growth rate compared with the same period last year. The urban fixed assets investment increased 31.3 percent to RMB 3.6368 trillion ($ 455.2 billion), 4.2 percentage points higher, among which the investment in real estate development grew 24.2 percent to RMB 769.5 billion ($ 96.3 billion), 0.7 percentage point higher in growth rate.
Broken down into various industries, investment in heavy industry increased 32.6 percent, among which, that in coal mining and dressing increased 45.7 percent, that in oil and gas exploration increased 30.3 percent, that in power industry increased 17.5 percent, that in railway transportation increased 87.6 percent; investment in light industry increased 41.2 percent, among which that in food
manufacturing industry increased 65.1 percent and that in textile industry increased 40.6 percent.
5. Consumption demand is steadily up. In the first half year, the total retail sales of consumer goods grew 13.3 percent to RMB 3.6448 trillion ($ 456.2 billion). Excluded the price factor, the real growth rate is 12.4 percent, 0.4 percentage points higher in growth rate than the same period last year.
6. Market price increase is moderate. The Consumer Price Index increased 1.3 percent in the first six months, down 1 percentage point in growth compared with the same period last year.
7. Export growth is going down and import growth is going up. In the first six months, the total foreign trade increased 23.4 percent to $795.7 billion, 0.2 percentage points higher in growth rate, among which the exports increased 25.2 percent to $428.6 billion, 7.5 percentage points lower in growth, and the imports increased 21.3 percent to $ 367.1 billion, 7.3 percentage points higher, which resulted in $ 61.4 billion trade surplus. In the end of June, the national foreign exchange reserve amounted $941.1 billion.
8. Consumer income is maintaining the rapid growth. In the first six months, the urban disposable income per capita is RMB 5,997 ($751), with the real growth rate of 10.2 percent (excluded the price factor), 0.7 percent higher than the same period last year. The rural cash income per capita is RMB 1,797 ($225), with the real growth of 11.9 percent, 0.6 percentage point lower in growth rate.
At present, the major problems existing in the operation of
China's macro economy are: the difficulty in rural income increase, excessive growth in fixed assets investment, excessive lending, and shrunk profits of some industries influenced by price increase in raw materials, fuels and power.