Economy in good shape as controls take effect
By Zhu Qiwen (China Daily)Updated: 2006-12-05 08:40
Growth of industrial added value and imports both dropped to 14.7 per cent in
October from 16.1 per cent and 22 per cent respectively in September.
"We
are not worrying about a slowdown of the whole economy," said Qu. "This is
because consumption is rising to sustain China's relatively rapid economic
growth."
China's retail sales jumped 14.3 per cent from the previous year to
699.8 billion yuan (US$89.1 billion) in October, the fastest pace in almost two
years.
The growth of retail sales for the first half of the year was 13.3
per cent. It rose to 13.7 per cent in July, 13.8 per cent in August and 13.9 per
cent in September. Retail sales for the first 10 months stood at 6.2089 trillion
yuan, up 13.6 per cent on the previous year.
The pick-up of domestic
consumption is closely related to fast income growth and low
inflation.
Per capita disposable incomes in towns and cities increased 10
per cent in the first nine months from the same period last year, and rural
incomes jumped 11.4 per cent.
Meanwhile, China's consumer price index, the key inflation gauge, increased only
1.4 per cent in October, lower than the expected 1.6 per cent.
"The
government's policy to boost consumption will show better results next year,"
said Yao Jingyuan, chief economist of the National Bureau of Statistics, at a
recent business forum.
The surge in China's trade surplus is more
surprising.
October witnessed a monthly trade surplus record of US$23.8
billion. The country's foreign trade in the first 10 months rose 24.1 per cent
year-on-year to hit US$1.425 trillion, surpassing the volume for the whole of
2005.
And the Commerce Ministry forecast that the country's overall trade
surplus will soar to a record US$150 billion this year, nearly 50 per cent above
the 2005 level.
As a global manufacturing centre, China is bound to reap
profits from processing trade.
But the country is definitely not in
pursuit of a trade surplus. China will step up reforms of its economy to counter
politically contentious trade imbalances, President Hu Jintao told world
business leaders attending an economic conference in Hanoi last
month.
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