Top Planner: China Economy "Good" in First Seven Months

China has successfully achieved its economic and social development goal in the first seven months of the year with agricultural expansion, enterprise reform and exports on steady rise, said Zeng Peiyan, director of the State Development Planning Commission.

Speaking at the ongoing 17th plenary session of the Standing Committee of the 9th National People's Congress(NPC), Zeng affirmed that China's gross domestic product (GDP) in the first half reached 3,949.1 billion yuan (US$475.8 billion), up 8.2 percent on a year-on-year basis after adjustment.

The minister summed up the economic performance of the first seven months in nine major aspects:

*Rural economy has witnessed a stable growth, with agricultural and crop structure further improved. The afforestation area of the first half year reached 4.12 million hectares.

*The reform of the state-owned enterprises (SOEs) has shown positive result, with 55 per cent of them beginning to make profit. The profit of state-owned and state-holding firms has topped 90.3 billion yuan (US$10.88 billion), nearly last year's total.

*Market sales were active and stable, with the consumer price index starting to pick up. According to statistics from the National Statistics Bureau, the total retail sales in the first seven month reached 1884.5 billion yuan (US$227.05 billion), a rise of 10 per cent over the year-earlier period.

*Fiscal income increases greatly and the financial sector performs well. Meanwhile, the stock market was active. The turnover of the China's two A-share stock market totalled 3,500 billion yuan (US$421.69 billion) in the first seven months, 12 per cent more than last year's total turnover.

*Foreign trade keeps growing rapidly, and the balance of payment stable. China has achieved a total trade surplus of US$14.3 billion in the first seven months, or US$3.1 billion more than that of the same period last year.

*The per capita income of residents keeps rising, while the social security system further improved.

*Fixed assets investment kept rising with input on major projects operating smoothly. January-July investment in fixed assets, excluding the collective and individual investment, reached 938.3 billion yuan (US$113.05 billion), up 12.6 per cent on a year-on-year basis.

*The project of developing China's western areas was launched. The central government carried out series of preferential policies to encourage investors, home and abroad, to participate in the project.

*The strategy of invigorating the country through science and technology was carried out smoothly. Various projects of social development work well.

According to Zeng, China's economic performance in the first seven months of this year indicates that China has overcome the negative impact of the Asian financial crisis.

"China will stick to its active fiscal policy while boosting domestic demand," he said. (Chinadaily)



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