General Situation

China's economy maintains a sound momentum in 2005. The stability of economic performance is improved, and the coordination of development progresses. Current problems in economic performance mainly consist of a weak agricultural basis, sluggish growth in grain production and farmers' income, excessive fixed assets investment plagued by an irrational structure and extensive mode of economic growth.

The gross domestic product (GDP) of the year was 18,232.1 billion yuan, an increase of 9.9 percent over the previous year. The added value of the primary industry was 2,271.8 billion yuan, up 5.2 percent; that of the secondary industry was 8,620.8 billion yuan, up 11.4 percent; and that of the tertiary industry, 7,339.5 billion yuan, up 9.6 percent. The added value of the primary, secondary and the tertiary industries accounted for 12.4 percent, 47.3 percent and 40.3 percent of the GDP, respectively.

The total energy consumption in 2005 amounted to 2.22 billion tons of standard coal equivalent, up 9.5 percent over 2004. Of this total, consumption of coal was 2.14 billion tons, up 10.6 percent; crude oil, 300 million tons, up 2.1 percent; natural gas, 50 billion cubic meters, up 20.6 percent; hydro power, 401 billion kwh, up 13.4 percent; and nuclear power 52.3 billion kwh, up 3.7 percent. Consumption of major raw materials included 400 million tons of rolled steel, up 20.1 percent; 15.61 million tons of aluminum oxide, up 21.7 percent; and 1.05 billion tons of cement, up 9 percent. Energy consumption for producing 10,000 yuan worth of GDP was 1.43 tons of standard coal equivalent, maintaining the same level of 2004.

The general level of consumer prices rose 1.8 percent over the previous year. Of this total, prices for service items inched up 3.3 percent. Retail prices of commodities gained 0.8 percent, while producer prices for manufactured goods climbed 4.9 percent and purchasing prices for raw materials, fuels and power went up 8.3 percent. Prices for investment in fixed assets saw an increase of 1.6 percent. Producer prices for farm products gained 1.4 percent. Housing prices in 70 large and medium-sized cities jumped 7.6 percent.

Change in Consumer Prices in 2005 Over 2004 (%)