Sheng Laiyun

Spokesman

National Bureau of Statistics of China

15 April 2011

In the first quarter of 2011, faced with the complicated and volatile international environment and the new emerging challenges in domestic economic development, the Central Party Committee and the State Council firmly carried out the pro-active fiscal policy and prudent monetary policy, strengthened and improved macro- economic control. As a result, the national economy maintained steady and fast growth, and had a very good beginning.

According to the preliminary estimation, the gross domestic product (GDP) of China in the first quarter of this year was 9,631.1 billion yuan, a year-on-year increase of 9.7 percent. The value added of the primary industry was 598.0 billion yuan, up by 3.5 percent; that of the secondary industry was 4,678.8 billion yuan, up by 11.1 percent; and that of the tertiary industry was 4,354.3 billion yuan, up by 9.1 percent. In the first quarter of 2011, the gross domestic product went up by 2.1 percent on quarterly bases.

1. Planting Area of Grain Expanded to Some Extent and Livestock Production Kept a Steady Growth. According to the planting intention survey conducted among more than 70,000 rural households in the country, the planting area for grain would reach 110.28 million hectares, an increase of 400 thousand hectares over that in the previous year. Of this total, that for summer grain would be 27.49 million hectares, an increase of 50 thousand hectares. The proportion of first and second grade seedlings of winter wheat accounted for 86 percent of the total, which was 3.1 percentage points higher than that in the same period of last year. In the first quarter of this year, the total output of pork, beef, mutton and poultry reached 21.42 million tons, a year-on-year growth of 1.8 percent. Of this total, the output of pork was 14.51 million tons, up by 1.7 percent.

2. Industrial Production Realized Steady Growth with a Continued Increase in Economic Efficiency of Enterprises. In the first quarter of 2011, the total value added of the industrial enterprises above designated size was up by 14.4 percent year-on-year. An analysis on different types of enterprises showed that the value added growth of the state-owned and state holding enterprises went up by 11.4 percent; collective enterprises by 10.2 percent; share-holding enterprises by 15.9 percent; and 11.9 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 14.9 percent, and 13.1 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 12.9 percent, 17.1 percent and 16.6 percent respectively. The production and sales of industrial products went on well. In the first quarter of this year, the sales ratio of industrial enterprises above designated size was 97.7 percent, or 0.1 percentage point higher than that in the same period of last year. In March, the total value added of the industrial enterprises above designated size was up by 14.8 percent year-on-year, or 1.19 percent month-on-month.

In the first two months of this year, the profits made by industrial enterprises above designated size stood at 645.5 billion yuan, up by 34.3 percent year-on-year. Among the 39 industrial divisions, 38 divisions registered year-on-year increase in profits, and the rest 1 division witnessed reduction of losses.

3. Investment in Fixed Assets Kept Fast Growth and that in Real Estate Increased Rapidly. In the first quarter of this year, the investment in fixed assets (excluding rural households) was 3,946.5 billion yuan, a year-on-year growth of 25.0 percent. Of this total, that in the state-owned and state holding enterprises reached 1,382.9 billion yuan, a rise of 17.0 percent. The investment in the primary industry, the secondary industry and the tertiary industry went up by 10.8 percent, 24.8 percent and 25.6 percent respectively. In term of different areas, the growth in eastern, central and western regions was 21.6 percent, 31.3 percent and 26.5 percent respectively. In March, the investment in fixed assets (excluding rural households) went up by 1.73 percent month-on-month.

In the first quarter of 2011, the investment in real estate development was 884.6 billion yuan, a year-on-year growth of 34.1 percent. Of this total, the investment in residential buildings reached 625.3 billion yuan, up by 37.4 percent. The sales of floor space of commercial buildings in the first quarter of 2011 reached 176.43 million square meters, a year-on-year growth of 14.9 percent. Of this total, the growth of residential buildings was up by 14.3 percent. In the first quarter of the year, the sources of funds for real estate development enterprises from current year reached 1,926.8 billion yuan, up by 18.6 percent year-on-year. In March, the national real estate climate index was 102.98.

4. Sales on Domestic Markets Enjoyed Steady Growth and the Consumption of Residential and Transportation Commodities like Motor Vehicles and Furniture Slowed down to Some Extent. In the first quarter, the total retail sales of consumer goods reached 4,292.2 billion yuan, a year-on-year rise of 16.3 percent. Of this total, the retail sales of the enterprises (units) above designated size stood at 1,904.0 billion yuan, up by 22.5 percent. Analyzed by different areas, the retail sales in urban areas reached 3,724.8 billion yuan, up by 16.4 percent, and the retail sales in rural areas stood at 567.4 billion yuan, up by 15.8 percent. Grouped by consumption patterns, the income of catering industry was 478.3 billion yuan, up by 15.3 percent; and that of retail goods was 3,813.9 billion yuan, up by 16.5 percent. In particular, the retail sales of the enterprises (units) above designated size reached 1,758.7 billion yuan, up by 23.0 percent. Of this total, the sales of furniture grew up by 24.5 percent, or 13.1 percentage points lower than that in the same period of last year; that of motor vehicles rose by 14.2 percent, or 25.6 percentages points lower; that of household appliances and audio-video equipment went up by 20.5 percent, or 9.1 percentage points lower; and that of petroleum and its products grew by 37.6 percent, or 2.7 percentage points lower. In March, the total retail sales of consumer goods rose by 17.4 percent year-on-year, or 1.34 percent month-on-month.

5. Consumer Prices Continued to Rise while Producer Prices for Industrial Products Increased Rapidly. In the first quarter of this year, the consumer prices went up by 5.0 percent year-on-year. The price rose by 4.9 percent in cities and 5.5 percent in rural areas. Grouped by commodity categories, the prices for food rose by 11.0 percent; prices for tobacco, liquor and articles grew up by 2.0 percent; clothing up by 0.3 percent; household facilities, articles and maintenance services up by 1.6 percent; health care and personal articles up by 3.1 percent; transportation and communication down by 0.1 percent; recreation, education, culture articles and services up by 0.6 percent; and housing went up by 6.5 percent. In March, the consumer prices went up by 5.4 percent year-on-year, or down by 0.2 percent month-on-month. In the first quarter of this year, the producer prices for industrial products went up by 7.1 percent year-on-year. In March, it rose by 7.3 percent year-on-year, or 0.6 percent month-on-month. In the first quarter, the purchasers’ prices for industrial products went up by 10.2 percent year-on-year. In March, it grew by 10.5 percent year-on-year, or 1.0 percent month-on-month.

6. Total Value of Imports and Exports Grew Rapidly and Quarterly Deficit was Seen. The total value of imports and exports for the first quarter was US$ 800.3 billion, up by 29.5 percent year-on-year. The value of exports was US$ 399.6 billion, up by 26.5 percent, and the value of imports was US$ 400.7 billion, up by 32.6 percent. The trade deficit was US$ 1 billion.

7. Urban and Rural Residents’ Income Increased Steadily with Higher Growth for Rural Residents than that for Urban Residents. In the first quarter of this year, the per capita total income of urban household was 6,472 yuan. Of this total, the per capita disposable income of urban population was 5,963 yuan, a year-on-year growth of 12.3 percent, or a real growth of 7.1 percent after deducting price factors. Of the per capita total income of urban household, the year-on-year growth of wage income was 10.2 percent; transferred income 8.5 percent; net income from operation 32.6 percent; and 23.6 percent from property income. The per capita cash income of rural population was 2,187 yuan, up by 20.6 percent year-on-year, or 14.3 percent growth in real term. Of this total, the growth of wage income was 18.9 percent; household operating income 21.4 percent; property income 13.3 percent; and 27.9 percent from transferred income.

8. Growth Rate of Money Supply Dropped and Growth of Newly Increased Loans Continued to Slow down. By the end of March, the balance of broad money (M₂) was 75.8 trillion yuan, a year-on-year growth of 16.6 percent, which was 3.1 percentage points lower than that at the end of last year; the balance of narrow money (M₁) was 26.6 trillion yuan enjoyed a year-on-year growth of 15.0 percent, or dropped by 6.2 percentage points; the balance of cash in circulation (M₀) was 4.5 trillion yuan, up by 14.8 percent, or 1.9 percentage points lower. The amount of outstanding loans of all financial institutions was 49.5 trillion yuan, increased by 2.2 trillion yuan over that at the beginning of this year, or a drop of 352.4 billion yuan as compared with the end of March last year. The amount of outstanding deposits of all financial institutions was 75.3 trillion yuan, an increase of 4.0 trillion yuan over the beginning of the year, or 54.5 billion yuan more than that a year ago.

The environment for international and national economic development is still fairly complicated, and full of instabilities and uncertainties. In the next phase, we should be guided by the scientific outlook on development, implement earnestly the various economic decisions and policies set by the Central Party Committee and the State Council, continue to carry out the pro-active fiscal policy and prudent monetary policy, maintain the continuity and stability of the policies, and improve their relevance, flexibility and effectiveness. We should also persist in balancing the relationships of steady and comparatively rapid economic development, the adjustment of economic structures and the management of the inflation expectation, and further consolidate the good momentum of economic development. Only by doing so could we realize the economic and social development goal in 2011, and make a good start for the twelfth five-year plan.

Notes:

1. Approved by the State Council, the seasonally adjusted month-on-month indicators of the following four will be released by the National Bureau of Statistics from April 2011, that is, the gross domestic product (GDP), value added of industrial enterprises above designated size, investment in fixed assets (excluding rural households), and total retails of consumer goods.

2. Approved by the State Council, the National Bureau of Statistics raised the cut-off size of industrial and fixed assets investment statistics from January 2011. The cut-off size of industrial enterprises changed from an annual revenue from principal business above 5 million yuan to 20 million yuan; and the cut-off size of fixed assets investment projects rose from a total planned investment above 500 thousand yuan to 5 million yuan. According to estimation, with the new coverage, the data collected on the total volume, structure and growth rates of industrial enterprises and investment in fixed assets showed a similar trend as compared with those under the former coverage.   

3. The National Bureau of Statistics improved the monthly statistical system of fixed assets investment, expanding the coverage of the monthly statistics from urban areas to rural enterprises and institutions, and defined it as the investment in fixed assets (excluding rural households). This makes the monthly data more complete and the definition more accurate.

4. From 2011, data on the retail sales of the enterprises (units) above designated size will be released. The retail sales of the enterprises (units) above designated size refer to the wholesale enterprises (units) with the revenue from principal business above 20 million yuan, the retail enterprises (units) with the revenue from principal business above 5 million yuan, and the lodging and catering enterprises (units) with the revenue from principal business above 2 million yuan.

5. In accordance with the data of national survey of urban and rural household consumption expenditure in 2010 and data of other surveys conducted by relevant departments, the National Bureau of Statistics made a routine adjustment of the weights of CPI from January 2011. By using the new weights, the consumer price index in March went up by 5.383 percent year-on-year, or down by 0.207 percent month-on-month, while it was up 5.415 percent year-on-year, or down by 0.225 percent month-on-month if the former weights were used.

6. From January 2011, the National Bureau of Statistics began to implement the new survey system of producer prices for industrial products. Statistics of the producer prices for manufactured goods changed to statistics of producer prices for industrial products, and accordingly the indexes of producer prices for manufactured goods and the purchasing prices for raw materials, fuel and power changed to the producer price indexes for industrial products and the purchasers’ price indexes for industrial products.

Note:

1. GDP, Value-added of Industry Above Designated Size and its growth rate were calculated at constant price. The growth rate of Per capita Cash Income of Rural Households, Per Capita Disposable Income of Urban Households, Per Capita Consumption Expenditure of Urban Households were real growth rate, other indicators of growth rate were calculated at current price.