Inflation clouds won't dim bright economic future
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Editor's Note: The Chinese economy is entering its first year of "the 12th Five-Year Plan (2011-15)," and continues to grow strongly in the new year. But public concerns about an unaffordable housing market and rising food prices still worry many citizens. Will inflation grow? Can the real estate market be harnessed? People's Daily (PD)interviewed Ba Shusong (Ba), deputy director of the Financial Research Institute with the Development Research Center of the State Council, and Peng Wensheng (Peng), chief economist of China International Capital Cooperation Limited, on these issues.
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Ba Shusong |
PD: How did the Chinese economy do last year?
Ba: Incomes grew steadily. For example, the total per capita income of urban households was 21,033 yuan ($3,190)in 2010, a rise of 11.5 percent compared to that in 2009. The per capita net income of rural residents was 5,919 yuan ($897), a rough increase of 14.9 percent and an actual growth rate of 10.9 percent when price factors are taken into account.
There was also a steady growth of agricultural production last year, and grain production has gone up seven years in a row. Industrial production grew and enterprise efficiency experienced a substantial increase. Market prices rose at similar rates to 2009 but food prices rose significantly. Imports and exports grew rapidly, but the trade surplus decreased.
Overall, we had a steady economic growth last year, which had laid a solid foundation for the positive macroeconomic trend of this year.
Peng: We should emphasize that the process of economic transition made important progress last year with breakthroughs in structural adjustment and significant changes in the allocation of investment, consumption and export which stimulated economic growth.
Out of the 10.3 percent growth in GDP, exports of goods and services made up 0.8 percent, domestic consumption 3.9 percent, and capital formation 5.6 percent. Final consumption and capital formation together contributed to 92 percent of growth, which is a more balanced way to promote the economy than export-driven growth. In 2011, we should be looking to promote development and improve people's lives.
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