China's gross domestic product (GDP) reached 5,877.3 billion yuan (710.7 billion US dollars) in the first six months of 2004, up 9.7 percent over the same period of last year.

Zheng Jingping, spokesman of National Bureau of Statistics, made the remarks Friday at a press conference.

According to the statistics, primary industry grew 4.9 percent to account for 617.7 billion yuan (70 billion US dollars); secondary industry, up 11.5 percent, for 3382.2 billion yuan (400 billion US dollars); and tertiary industry, up 8.0 percent, for 1,877.4 billion yuan (200 billion US dollars). The growth rates for the first and second quarter were 9.8 and 9.6 percent respectively, with no obvious fluctuations.

The statistics show a steady and fast growth in China's industrial production, which had an added value of 2,982.2 billion yuan (340 billion US dollars), up 11.9 percent.

Agriculture production is also positive. The total area under grain crops increased after five years of decline. The area sown to grain crops is predicted to expand one percent over last year.

China's Consumer Price Index (CPI) rose 3.6 percent year-on-year in the first half of this year, said the NBS spokesman. The consumer prices in China's urban areas increased 3 percent and in rural areas, 4.6 percent.

In the half-year period, prices for food went up 9.5 percent; for medical and health care products and personal goods, up 0.3 percent; for education, recreation and cultural goods as well as services, up 0.9 percent; for housing, up 3.7 percent. But the prices for clothes, household appliances, transportation and telecommunication dropped by 1.4 percent, 1.6 percent and 1.7 percent respectively.

In the same period, the retail price increased 2.4 percent, factory price of industrial products rose 4.7 percent, raw material and fuel prices rose 9.8 percent.

The NBS also reported that the consumption price fell 0.1 percent in May and 0.7 percent in June month-on-month.

The average cash income of China's rural residents reached 1,345 yuan (162.6 US dollars) in the first half of 2004, up 16.1 percent, or 10.9 percent accounting for inflation, over the same period of last year. The growth rate was 8.4 percentage points higher than last year, the fastest growth since 1997.

From January to June, the disposable income of urban residents reached 4,815 yuan, up 11.9 percent, or 8.7 percent accounting for inflation, over the same period of last year, Zheng said. The urban growth rate was up 0.3 percentage point.

Zheng said that the economy was performing well, creating stable growth conditions for the next phase. Some problems have not been settled, he acknowledged, such as energy and transportation restrictions, fixed assets investment speed and unreasonable credit structure.

In the second half of this year, more emphasis will be put on restructuring and transforming economic growth in order to ensure sustained, fast and coordinated development of the national economy, he said.

By People's Daily Online