China's top statistician Li Deshui announced yesterday the country's gross domestic product (GDP) grew by 9.9 per cent in 2005 by hitting 18.2321 trillion yuan (US$2.2481 trillion). In 2004, the GDP growth rate was 10.1 per cent.

Speaking at a press conference of the Information Office of the State Council, Li said the Chinese mainland's economy last year showed a progressing momentum characterized by "rapid increase, improved efficiency, mild rise of prices and enhanced vitality."

He noted that of the GDP, the secondary industry mainly manufacturing and construction got the biggest share, or 47.3 per cent, by pocketing 8.620 trillion yuan (US$1.062 trillion) as added value last year. It was a hike of 11.4 per cent over the year earlier. In 2004, its ratio to GDP was 46.2 per cent.

Of them, industrial production was "steady and fast," said Li, head of the National Bureau of Statistics, citing an added value of the industrial sector at 7.619 trillion yuan (US$939.46 billion), a rise of 11.4 per cent on the previous year.

Meanwhile, two other GDP categories also showed growth, he said. The added value of primary industry or agriculture was 2.271 trillion yuan (US$280.12 billion), up 5.2 per cent. The tertiary industry or service sector netted 7.339 trillion yuan (US$904.99 billion), a rise of 9.6 per cent.

Their shares of the GDP last year were 12.4 per cent and 40.3 per cent respectively. Back in 2004, the figures were 15.2 per cent and 40.6 per cent respectively.

Li predicted that the national economy this year will continue to see a "good momentum of steady and fast development," if the relationships among reform, development and stability could be better handled, and various difficulties and risks be effectively dealt with.

He said the Chinese mainland's grain yield hit 484 billion kilograms last year, a jump of 3.1 per cent over 2004. The increase was 14.6 billion kilograms.

Despite concerns over bird flu, growth was still seen in animal and husbandry industry last year, with meat output up 6.3 per cent over 2004, Li said.

However, cotton production standing at 5.7 million tons dropped 9.8 per cent over the previous year.

Oil-bearing crops and sugar output stood at the same level.

Three pillars

Among the three pillars propelling GDP growth, the total volume of imports and exports for 2005 reached US$1.422 trillion, a growth of 23.2 per cent on 2004, Li said.

Fixed assets investment topped 8.860 trillion yuan (US$1.092 trillion), a growth of 25.7 per cent, while total retail sales of consumer goods reached 6.717 trillion yuan (US$828.323 billion), a 12.9 per cent hike over the figure a year earlier, or a real growth of 12 per cent after deducting price factors.

Fixed assets investment in urban areas alone hit 7.509 trillion yuan (US$925.968 billion), up by 27.2 per cent over the previous year.

The top statistician also added that the mainland's year-end foreign exchange reserves hit US$818.9 billion, an increase of US$208.9 billion as compared with the year-beginning figure.

Foreign trade and retail sales

Li said foreign trade last year witnessed "fast growth" with a trade surplus of US$101.9 billion,

Exports hit US$762.0 billion, 28.4 per cent up on a year earlier, while imports numbered US$660.1 billion, showing a growth of 17.6 per cent.

Meanwhile, actual input of foreign direct investment in 2005 stood at US$60.3 billion, which was a drop of 0.5 per cent over the 2004 figure.

Li noted that as domestic market sales accelerated last year, the total retail sales of consumer goods reached 6.717 trillion yuan (US$828.32 billion), a growth of 12.9 per cent on 2004.

This represented a real growth of 12 per cent after deducting price factors, which is 1.8 percentage points higher than that in the previous year.

Of this total, the retail sales of consumer goods in urban areas grew by 13.6 per cent and the retail sales at county and below county level jumped by 11.5 per cent.

At the same time, the growth of the wholesale and retail sector was 12.6 per cent, and the growth of the catering industry stood at 17.7 per cent, Li said.

Of the sales by wholesale and retail business above designated size, the sales of communication equipment jumped by 19.9 per cent, and household electric appliances and audio-video appliances sales expanded by 14.8 per cent. Sales of automobiles witnessed a hike of 16.6 per cent, while oil and oil product sales enlarged by 34.4 per cent.

Residents' income

The national statistics chief stressed that income of urban and rural households continued to grow last year, with per capita disposable income of urban households reaching 10,493 yuan (US$1,293.8), or a real growth of 9.6 per cent, after deducting price factors. This was also 1.9 percentage points higher than that in the previous year.

Meanwhile, the per capita net income of rural households topped 3,255 yuan (US$401.36), seeing a real growth of 6.2 per cent, but 1.6 percentage points lower than that in 2004.

Li also noted that by the end of last year, the savings deposits of households amounted to 14.1 trillion yuan (US$1.739 trillion), an increase of 2.1 trillion yuan (US$258.9 billion) as compared with the figure at the beginning of the year.

The registered urban unemployment rate by the end of last year was 4.2 per cent, the same level as in 2004, Li said.

Source: China Daily