China's economic development after 4-trln-yuan stimulus package

Chinese people should be proud of the country's economic performance as the government's economic stimulus package proved effective, Premier Wen Jiabao told Xinhua Sunday in an exclusive interview.

"We have stabilized economic growth and employment and maintained social stability over the past one year period, which is a comfort to me," he said.

A year after the adoption of the 4-trillion-yuan (585.6 billion U.S. dollars) economic stimulus package, the world's third largest economy has curbed a downward trend and confirmed a V-shaped recovery.

Following are some major economic data reflecting China's economic development after the stimulus package:

GROSS DOMESTIC PRODUCT (GDP)

China's GDP grew 8.9 percent year on year in the third quarter, accelerating from 7.9 percent in the second quarter and 6.1 percent in the first. The 6.1-percent growth was the lowest since the introduction of quarterly GDP figures in the fourth quarter of1999.

In the last quarter of 2008, GDP growth slid to 6.8 percent year-on-year, sharply down from 9 percent in the previous quarter as impact of the global financial crisis started to weigh on the national economy.

EXPORTS, CONSUMPTION AND INVESTMENT

Exports, one of the three engines supporting China's fast expansion over the past few years, were hit hard after the global financial turmoil. However, after seasonal adjustment, the country's foreign trade started to rebound month on month since March of this year.

China's imports and exports rose 9.8 percent in November year on year, ending a 12-month decline. November exports fell 1.2 percent from a year earlier, but rose 2.6 percent from the October figure.

Retail sales and fixed-asset investment continued to rise rapidly, boosted by the countries' policies to enhance domestic demand.

According to government statistics, China's GDP increased 7.7 percent year on year in the first nine months this year. Consumption contributed 4 percentage points to the GDP growth, investment accounted for 7.3 percentage points while exports subtracted 3.6 percentage points.

INDUSTRIAL OUTPUT

China's industrial output increased only 3.8 percent in the first two months this year, a much slower growth pace from a year earlier when it was 15.4 percent. The rate of growth has started to accelerate since April, highlighting continued strengthening in the country's economic recovery.

In November, the industrial output surged 19.2 percent year on year, its fastest pace this year.

NATIONAL FISCAL REVENUE

China's fiscal revenue has been rising since May after declining in the first four months of this year. It has risen rapidly, particularly since August.

In November, the country's fiscal revenue rose 32.6 percent from a year earlier, bringing the total in the first 11 months to 6.34 trillion yuan, up 9.2 percent year on year.

EMPLOYMENT

The country has created more than 10 million new jobs in urban areas in the first 11 months this year, well above the target of 9million by the end of 2009 set in March, according to statistics of the Ministry of Human Resources and Social Security.

The urban unemployment rate stood at 4.3 percent by the end of September, remaining unchanged from the first two quarters.

In 2008, China's urban unemployment rate was 4.2 percent.

EQUITY MARKET

China's equity market has become one of the world's best performers this year. As of Friday, the benchmark Shanghai Composite Index had climbed 73 percent this year, while the Shenzhen Component Index was more than doubled. Market value on the Shanghai and Shenzhen bourses nearly doubled from the end of last year to 23.4 trillion yuan. 

Source: Xinhua