The National Economic and Social Development Situation　Summarization

The national economy maintained relatively fast growth. The gross domestic product (GDP) of the year topped the 10 trillion yuan level to reach 10,239.8 billion yuan, up by 8 percent over the previous year at comparable prices. The value-added of the primary industry was 1,488.3 billion yuan, up by 2.9 percent. The value-added of the secondary industry was 5,298.2 billion yuan, up by 9.9 percent. The value-added of the tertiary industry was 3,453.3 billion yuan, up by 7.3 percent.

The general price level declined by small margin. The general level of consumer prices in China of the year was down by 0.8 percent over the previous year. Of this total, the consumer price level in urban areas was down by 1 percent, and it was down by 0.4 percent in rural areas. Analyzed by price categories, the prices for commodities dropped by 1.3%, the producers’ prices for manufactured goods dropped by 2.2%, and the purchasing prices for raw materials, fuels and power went down by 2.3 percent. The prices for investment in fixed assets were up 0.2 percent. Prices of service items in household consumption rose by 1.8%.

The size of employment continued to expand. By the end of 2002, the total of employed people in China numbered 737.40 million, or 7.15 million more than at the end of 2001. Of this total, 247.80 million were employed in urban areas, an increase of 8.40 million persons over that at the end of 2001. By the end of 2002, the number of laid-off workers of state-owned enterprises who were not re-employed was 4.10 million, or 1.05 million persons less than that at the end of 2001. The urban unemployment rate through unemployment registration was 4 percent at the end of 2002, up by 0.4 percentage points.

China’s balance of payment was in good position. The trade surplus was 30.4 billion US dollars in 2002. The actually utilized foreign direct investment during the year was 52.7 billion US dollars, up by 12.5% over 2001. By the end of 2002, China’s foreign exchange reserves reached 286.4 billion US dollars, an increase of 74.2 billion US dollars as compared with that at the end of the pervious year. The exchange rate of RMB was stable, standing at 1 US dollar = 8.2773 RMB yuan at the end of the year.

Steady progress was made in the reform of economic system and in the structural adjustment. Competition through the market has taken initial shape in the once monopoles sectors by deepened reform of such sectors as telecommunications, civil aviation, power generation and supply. The reform and loss-reducing of enterprises in defense industry progressed smoothly. Reforms continued in the fields of government finance and taxation, banking, social security, and circulation systems for grain and cotton. Reform of the administrative procedures for examination and approval was pushed forward. Experiments in the reform of the tax and fee collection system in rural areas were gradually expanded and notable progress was made. Positive advancement was scored in the development of the western region, with accelerated progress in the construction of infrastructure and ecological environment. Agriculture production was reoriented towards regional concentration, quality improvement and industrialization. Adjustment of industrial structure was accelerated by expanding the share of industries with high or new technologies characterized by information technology. Innovation took place in domestic trade as is reflected by the rapid development of modern circulation and distribution systems.

Main problems that remained in economic performance included: the restraints on economic growth by insufficient effective demand and irrational supply structure, still high pressure for employment, problems in increasing farmers' income, the difficulties in the life of some urban and rural households, persistent market disorder, and occasional occurrence of serious accidents in production