Further Expanding Momentum of China's Economic Recovery in the First Quarter of 2010

Li Xiaochao

Spokesman

National Bureau of Statistics of China

15 April 2010

In the first quarter of 2010, all regions and departments effectively implemented the policies and measures set by the Central Party Committee and the State Council and firmly carried out the packages of policies on dealing with the international financial crisis, the momentum of national economic recovery has further expanded, which has laid a good foundation for reaching the targets set for the whole year.

According to the preliminary estimation, the gross domestic product (GDP) of China in the first quarter of this year was 8,057.7 billion yuan, a year-on-year increase of 11.9 percent, which was 5.7 percentage points higher than that in the same period last year. The value added of the primary industry was 513.9 billion yuan, up by 3.8 percent; that of the secondary industry was 3,907.2 billion yuan, up by 14.5 percent; and that of the tertiary industry was 3,636.6 billion yuan, up by 10.2 percent.

1. The agricultural production was good with increased acreage of grain crops. The expected planting area for grain would reach 109.46 million hectares, an increase of 470 thousand hectares over that in the previous year. The proportion of first and second grade seedlings of winter wheat accounted for 82.9 percent of the total, which was 3.9 percentage points higher than last winter’s estimation. In the first quarter of this year, the total output of pork, beef and mutton reached 21.04 million tons, a year-on-year growth of 4.7 percent, and the output of meat was 14.27 million tons, up by 5.2 percent in particular.

2. Industrial production picked up with a substantial increase in economic efficiency of enterprises. In the first quarter of this year, the total value added of the industrial enterprises above designated size was up by 19.6 percent year-on-year, or 14.5 percentage points higher than that in the first quarter of 2009. An analysis on different types of enterprises showed that the value added growth of the state-owned and state holding enterprises went up by 19.9 percent; collective enterprises by 13.0 percent; share-holding enterprises by 20.8 percent; and 18.8 percent growth for enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan provinces. The year-on-year growth of heavy industry was 22.1 percent, and 14.1 percent for the light industry. All the 39 industrial divisions registered year-on-year growth. In terms of different areas, the growth in eastern, central and western regions was 18.3 percent, 23.1 percent and 20.2 percent respectively. The production and sales of industrial products went on well. In the first quarter of this year, the sales ratio of industrial products was 97.5 percent, or 0.5 percentage point higher than that in the previous year.

In the first two months of this year, the profits made by industrial enterprises above designated size stood at 486.7 billion yuan, up by 119.7 percent year-on-year. Among the 39 industrial divisions, 35 divisions registered year-on-year increase in profits, 2 divisions reversed from loss-making to profits, and the rest 1 division witnessed reduction of losses.

3. Investment in fixed assets increased rapidly and that in real estate continued to accelerate. In the first quarter of this year, the investment in fixed assets of the country was 3,532.0 billion yuan, a year-on-year growth of 25.6 percent, or a drop of 3.2 percentage points as compared with the growth in the same period last year. Of this total, the investment in urban areas reached 2,979.3 billion yuan, up by 26.4 percent, or a drop of 2.2 percentage points; that in rural areas was 552.8 billion yuan, up by 21.0 percent, or a drop of 8.4 percentage points. Of the total investment in fixed assets in urban areas, that in the primary industry, the secondary industry and the tertiary industry went up by 9.7 percent, 22.4 percent and 30.0 percent respectively. The investment in eastern, central and western regions grew by 24.4 percent, 26.2 percent and 30.0 percent respectively. In the first quarter of this year, the investment in real estate development was 659.4 billion yuan, up by 35.1 percent year-on-year, or a rise of 31 percentage points.

4. Sales on domestic markets enjoyed steady and fast growth and the new areas for consumption increased rapidly. In the first quarter, the total retail sales of consumer goods reached 3,637.4 billion yuan, a year-on-year rise of 17.9 percent, which was 2.9 percentage points higher than that in the same period last year. The retail sales in cities reached 3,057.1 billion yuan, up by 18.4 percent, and the retail sales in rural areas stood at 580.3 billion yuan, up by 15.4 percent. Grouped by consumption patterns, the income of catering industry was 407.7 billion yuan, up by 16.7 percent; that of retail sales of commodities, 3,229.7 billion yuan, up by 18.1 percent. In particular, the retail sales by businesses above designated size reached 1,287.7 billion yuan, up by 29.6 percent. Rapid growth was registered in emerging areas for consumption: the sales of motor vehicles rose by 39.8 percent; that of furniture went up by 37.6 percent, and that of household appliances and audio-video equipment grew by 29.6 percent.

5. The year-on-year consumer prices went up while producer prices for manufactured goods increased rapidly. In the first quarter of this year, the consumer prices went up by 2.2 percent. The price rose by 2.1 percent in cities and that in rural areas by 2.4 percent. Grouped by commodity categories, four out of the eight witnessed growth and the rest four saw drops in prices. The prices for food rose by 5.1 percent; prices for tobacco, liquor and articles up by 1.6 percent; health care and personal articles up by 2.4 percent; housing, up by 2.9 percent; prices for clothing down by 0.9 percent; household facilities, articles and maintenance services down by 0.9 percent; transportation and communication down by 0.1 percent; and recreation, education, culture articles and services down by 0.1 percent. In terms of month-on-month change, in March this year, the consumer prices dropped by 0.7 percent. In the first quarter of this year, the producer prices for manufactured goods went up by 5.2 percent year-on-year. In March, it was up 0.5 percent month-on-month. In the first quarter, the year-on-year growth of purchasing prices for raw materials, fuels and power was 9.9 percent.

6. Foreign trade recovered rapidly and trade deficit was seen in March. The total value of imports and exports for the first quarter was US$ 617.85 billion, up by 44.1 percent year-on-year; it was 34.9 percentage points higher than that in the fourth quarter of 2009. The value of exports was US$ 316.17 billion, up by 28.7 percent, and the value of imports was US$ 301.68 billion, up by 64.6 percent. The trade surplus was US$ 14.49 billion, a drop of US$ 47.9 billion over the same quarter last year. The trade deficit in March was US$ 7.24 billion.

7. The urban and rural population’s income continued to grow with rapid growth in income transfer. In the first quarter of this year, the per capita total income of urban household was 5,787 yuan. Of this total, the per capita disposable income of urban population was 5,308 yuan, a year-on-year growth of 9.8 percent, or a real growth of 7.5 after deducting price factors. Of the per capital total income of urban household, the year-on-year growth of wage income was 9.7 percent; transferred income 13.3 percent; net income from operation 7.5 percent; and 17.0 percent from property income. The per capita cash income of rural population was 1,814 yuan, up by 11.8 percent year-on-year, or 9.2 percent growth in real term. Of this total, the growth of wage income was 16.3 percent; household operating income 7.6 percent; property income 15.6 percent; and 13.8 percent from transferred income.

8. The growth rate of money supply dropped from the high level while the newly increased credits declined as compared with that a year ago. By the end of March, the balance of broad money (M₂) was 65.0 trillion yuan, a year-on-year growth of 22.5 percent, which was 5.2 percentage points lower than that at the end of last year; the balance of narrow money (M₁) was 22.9 trillion yuan, a rise of 29.9 percent, or 2.4 percentage points lower; the balance of cash in circulation (M₀) was 3.9 trillion yuan, up by 15.8 percent or 4.0 percentage points higher. The amount of outstanding loans of all financial institutions was 42.6 trillion yuan, increased by 2.6 trillion yuan over that at the beginning of this year, or a drop of 2.0 trillion yuan as compared with the beginning of last year. The amount of outstanding deposits of all financial institutions was 63.8 trillion yuan, an increase of 4.0 trillion yuan over the beginning of the year, or 1.6 trillion yuan less than the beginning of last year.

The environment for economic development is still fairly complicated, and we are still faced with a lot of difficulties and problems in the course of economic recovery. We should be guided by the scientific outlook on development, implement various policies set by the Central Party Committee and the State Council, maintain the continuity and stability of those policies, and continue to carry out the pro-active fiscal policy and moderately easy monetary policy. We should also improve the relevance and flexibility of the policies while facing the new situation and circumstances. In implementing the policies, we should use the right dynamics, set the pace and focus on the priorities, and at the same time to balance the relationships of steady and comparatively rapid economic development, the adjustment of economic structures and the management of the expectation of inflation. Only by doing so could we achieve a sound and fast economic and social development. 

Main Statistical Data in March

Note:

1.      Construction enterprises refer to enterprises of general constructing contractors and professional contractors (excluding enterprises of worker subcontractors) which possess qualification grades.

2.      Produce prices of agricultural products refer to prices received by producers when they directly sell farm products.

3.      The data on GDP, value-added of industry above designated-size and its growth-rate by items are calculated at comparable price. The data on per capita cash income of rural households, per capita disposable income of urban households and growth rate of per capita consumption expenditure of urban households are all real growth rate. And the data on other growth rates are calculated at current price.