In 2005, China continued to strengthen and improve macro-control, with the national economy and social development acquiring a marked effect. According to preliminary calculation, the gross domestic product (GDP) amounted to 18232.1 billion yuan for the whole year, up 9.9% over last year. Of which, added value for the primary industry registered 2271.8 billion yuan, up 5.2%; added value for the secondary industry turned out to be 8620.8 billion yuan, up 11.4%; added value for the tertiary industry amounted to 7339.5 billion yuan, up 9.6%. Added value for the primary, secondary and tertiary industries accounted for 12.4%, 47.3% and 40.3% of the GDP respectively.

Industry

In 2005, China’s industrial added value amounted to 7619 billion yuan, up 11.4% over last year. Added value for the industries above designated size amounted to 6642.5 billion yuan, up 16.4%, of which, heavy industry fulfilled an added value of 4584.057 billion yuan, up 17%; the light industry fulfilled an added value of 2058.464 billion yuan, up 15.2%.

In 2005, among industrial enterprises above designated size throughout the country, added value of the state-owned and stateholding enterprises increased by 10.7% over the same period of last year; added value of the collectively-owned enterprises rose by 12.4%; added value of joint-stock enterprises grew 17.8%; added value of foreign-funded, Hong Kong, Macao and Taiwan-invested enterprises rose by 16.6%; added value of the private enterprises increased by 25.3%. In 2005, sales rate for industrial products registered 98.1%, same as last year.

Of the major raw material products, output of the coarse steel rose 24.6%; output of steel rose 24.1%; output of cement rose 10.0%; output of 10 nonferrous metals rose 13.2%; output of such major chemical industrial products as sulphuric acid, soda ash, caustic soda, ethylene, etc. rose from 9.9% to 21.4%. The aggregate production of primary energy for the whole year was 2.06 billion tons of coal equivalent (tce), up 9.5% over last year; the generated energy increased by 12.3%; raw coal grew by 9.9%; crude oil grew by 2.8%. 5.7 million automobiles were produced, up 12.1% over last year, of which cars accounted for 2.77 million, up 19.7%. Among industries above designated size in the whole year, added value of such hi-tech industries as program-controlled exchange machines, mobile phones, and mini-computers reached 783.9 billion yuan, up 19.8% over last year.

Of the industries above designated size throughout the country, state-owned and stateholding enterprises fulfilled a profit of 644.7 billion yuan, up 17.4% over last year; collectively-owned enterprises fulfilled a profit of 55.1 billion yuan, up 32.0%; joint-stock enterprises fulfilled a profit of 742.0 billion yuan, up 28.7%; foreign-funded, Hong Kong, Macao and Taiwan-invested enterprises fulfilled a profit of 396.7 billion yuan, up 6.9%; private enterprises fulfilled a profit of 197.5 billion yuan, up 47.3%.

Fixed asset investment

During the whole year, the fixed asset investment of the whole society amounted to 8860.4 billion yuan, up 25.7% over last year. Investment in cities and towns amounted to 7509.6 billion yuan, up 27.2%. Of which, investment from state-owned and stateholding enterprises amounted to 4004.7 billion yuan, up 17.5% over last year, investment in real estate development amounted to 1575.9 billion yuan, up 19.8% over last year; investment in rural areas amounted to 1350.8 billion yuan, up 18.0%.

Of the investment in cities and towns, investment in primary industry amounted to 82.3 billion yuan, up 27.5%; investment in secondary industry amounted to 3159.8 billion yuan, up 38.4%; investment in tertiary industry amounted to 4267.5 billion yuan, up 20.0%.

In terms of trades and professions, investment in coal mining and ore dressing rose by 65.6%; investment in power and heating production and supply rose 33.7%; investment in oil and gas extracting rose 29.7%; investment in railway rose 45.7%; investment in communication and transportation equipment manufacturing rose 51.1%; investment in textile industry rose 38.0%; investment in education rose 8.4%; investment in public health rose 28.9%.

Finance

In 2005, China’s national economy continued to maintain a steady and rapid growth and the finance functioned in a stable way. The aggregate money credit grew in a generally proper way and the credit structure was further improved, which was basically in line with the overall requirements of the macro-control.

At the end of 2005, balance of broad money supply M2 amounted to 29900 billion yuan, up 17.6% as compared with last year, with the growth rate being 2.9 percentage points higher than that of last year. Balance of narrow money supply M1 amounted to 10700 billion yuan, up 11.8% as compared with last year, with the growth rate being 1.8 percentage points lower than that of last year. Balance of cash in circulation M0 amounted to 2400 billion yuan, up 11.9% as compared with last year. The accumulated net cash input in the whole year amounted to 256.3 billion yuan, with an increased input of 84.1 billion yuan than last year.

Deposits in financial institutions grew steadily. At the end of 2005, balance of various kinds of Renminbi (RMB) and foreign exchange deposits in all financial institutions (including foreign-funded financial institutions) amounted to 30000 billion yuan, up 18.2% over last year. Of which, balance of various kinds of RMB deposits amounted to 28700 billion yuan, up 19.0% over last year; balance of foreign exchange deposits amounted to 161.6 billion US dollars, up 5.6% as compared with the previous year. Enterprises and residents were more inclined towards fixed deposits. Balance of household RMB savings deposits amounted to 14100 billion yuan, up 18.0% over last year.

Loans from financial institutions increased in a steady way. At the end of 2005, balance of RMB and foreign exchange loans from all financial institutions amounted to 20700 billion yuan, up 12.8% over last year. Of which, balance of RMB loans amounted to 19500 billion yuan, up 13.0% over last year; balance of foreign exchange loans amounted to 150.5 billion US dollars, up 12% as compared with last year. In 2005, balance of RMB deposits grew an average of 13% each month, maintaining a steady growth month by month.

Foreign exchange reserve maintained a faster growth, with the growth rate slightly declining. By the end of 2005, China’s foreign exchange reserve had amounted to 818.9 billion US dollars, increasing 208.9 billion US dollars as compared with the end of last year, up 34.3%, with the growth rate falling 17 percentage points over last year. On July 21, 2005, RMB foreign exchange rate mechanism was reformed and the new RMB foreign exchange rate mechanism has been functioning steadily, with the elasticity of the RMB foreign exchange rates growing strong. At the end of the year, exchange rate of RMB to US dollar was 8.0702, appreciating 2.56% over the end of the previous year.

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