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Last updated at: (Beijing Time) Wednesday, July 16, 2003

China's GDP Grows Steadily in First Half Year

China's economy slowed down in the second quarter of this year, under the impact of SARS, and the service sector saw almost zero growth. However, the picture painted by the Deputy Director of the National Bureau of Statistics in his half��year report to China's legislature was not as gloomy as it looks. The bureau is predicting that average GDP growth this year will top 8 percent despite the slowdown.


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China's economy slowed down in the second quarter of this year, under the impact of SARS, and the service sector saw almost zero growth. However, the picture painted by the Deputy Director of the National Bureau of Statistics in his half-year report to China's legislature was not as gloomy as it looks. The bureau is predicting that average GDP growth this year will top 8 percent despite the slowdown.

Seven major economic departments are currently reporting to the Financial and Economic Working Committee of the National People's Congress. They are giving their assessment of the national economy, banking, social security and foreign trade for the first half of this year.

Qiu Xiaohua, Vice Deputy Director of the National Bureau of Statistics, noted that China's GDP grew by 8.2 percent in the first half of this year. But the situation in the second quarter was less rosy.

Qiu said, "The GDP growth rate in the second quarter dropped by 3.2 percent from the first quarter's 9.9 percent. It is the lowest increase of the same period since 1992. The service sector was hard hit, growing just 0.8 percent."

The nation's farmers felt little impact from SARS, though sales of agricultural products were slightly affected. Despite SARS, Qiu Xiaohua predicts that average economic growth for the year will top 8 percent.

"SARS had an impact. But it didn't lead to a crisis in the economy. The fundamentals determining China's long-term economic growth have not changed. The engine for economic growth is still picking up. SARS-hit industries are recovering faster than expected," Qiu added.

Wang Dongjin, Vice Minister of Labor and Social Securities, said that SARS had shrunk the job market, affecting employment in the second half of the year. New college graduates are likely to find the hunt for a job particularly tough.


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