Domestic sales increased rapidly both urban and rural markets.

In the first half of this year, the total retail sales of consumer goods reached 5,104.3 billion yuan, a year-on-year growth of 21.4 percent (23.0 percent growth in June), which was 6.0 percentage points higher over a year earlier. Of this total, the retail sales in urban areas stood at 3,481.9 billion yuan, up 22.1 percent, and the retail sales at and below country level were 1,622.4 billion yuan, up 20.0 percent. Grouped by different sectors, the sales by wholesale and retail businesses was 4,306.8 billion yuan, up 21.3 percent, and that by lodging and catering industry was 720.7 billion yuan, up 24.0 percent.

The growth rate of consumer prices dropped while the producer prices continued to rise.

In the first half of this year, the consumer price index went up by 7.9 percent (7.1 percent growth in June, year-on-year, down by 0.6 percentage point over the previous month, the month-on-month change declined by 0.2 percent), 0.2 percentage point lower than that in the first five months of this year. The prices rose by 7.6 percent in cities and 8.6 percent in rural areas. Grouped by commodity categories, prices for food rose by 20.4 percent, contributing 6.64 percentage points to the overall price rise; and prices for housing were up 6.9 percent, contributing another 1.02 percentage points. Prices for other categories of commodities witnessed light rises or drops. In the first half of this year, the retail prices of commodities rose by 7.5 percent year-on-year (7.1 percent growth in June), or 5.1 percentage points higher. The producer prices for manufactured goods went up by 7.6 percent (8.8 percent growth in June), which was 4.8 percentage points higher over that in the same period last year. The purchaser prices for raw material, fuel and power rose by 11.1 percent (13.5 percent growth in June), or 7.3 percentage points higher. The year-on-year growth of the prices for housing in 70 large and medium-sized cities went up by 10.2 percent (8.2 percent in June), which was 4.2 percentage points higher than a year earlier.

The growth rate of export dropped to some extent and a rapid growth was seen in foreign direct investment.

In the first half of this year, the total value of imports and exports was US$ 1,234.2 billion, a year-on-year growth of 25.7 percent or 2.4 percentage points higher over that in the same period last year. The value of exports was US$ 666.6 billion, up 21.9 percent or 5.7 percentage points lower and that of the imports was US$ 567.6 billion, up 30.6 percent, or 12.4 percentage points higher. China had a trade surplus of US$ 99.0 billion, a decrease of US$ 13.2 billion over that in the same period last year. In the first half of this year, the total value of foreign direct investment actually utilized was US$ 52.4 billion, up 45.6 percent, or 33.4 percentage points higher than that a year earlier. By the end of June, the foreign exchange reserves of China stood at US$ 1,808.8 billion, a year-on-year growth of 35.7 percent.

New employment in urban areas increased steadily with a continued rise of income of urban and rural residents.

In the first half of this year, the new employment in urban areas was 6.40 million people, fulfilling 64 percent of the target set for the whole year. A total number of 2.82 million laid-off workers were reemployed, fulfilling 56 percent of the yearly target. Another total of 770 thousand people with difficulties in finding jobs were employed, fulfilling 77 percent of the yearly target. In the first half of this year, the per capita disposable income of urban residents was 8,065 yuan, a year-on-year growth of 14.4 percent, or a real growth of 6.3 percent after deducting price factors. The cash income of rural residents was 2,528 yuan, up 19.8 percent or a real growth of 10.3 percent.

Money supply was basically stable with an increase of the savings deposits by a large margin.

By the end of June, the broad money (M2) was 44.3 trillion yuan, a year-on-year growth of 17.4 percent, or 0.3 percentage point higher; the narrow money (M1) was 15.5 trillion yuan, up 14.2 percent, down by 6.7 percentage points; and the cash in circulation (M0) was 3,018.1 billon yuan, up 12.3 percent or down by 2.3 percentage points. The outstanding RMB loans of all financial institutions increased by 28,619.9 billion yuan, an increase of 2,452.5 billion yuan over that at the beginning of this year, a deceleration of 89.9 billion yuan over the same period last year. The outstanding RMB deposits of all financial institutions was 43,898.9 billion yuan, an increase of 4,964.9 billion yuan over that at the beginning of this year, or an acceleration of 1,577.4 billion yuan year-on-year. The net withdrawal of money was 19.4 billion yuan, an increase of 240 million yuan over the same period last year.

The outstanding problems existing in the current economic performance include: the pressure on rapid prices' rise is still high; there are factors to constrain steady agricultural production and raise the income of rural residents; the international financial situation is severe, and there are uncertainties in world economic development. In the future, we should adhere to the scientific outlook on development, carefully implement the decisions and plans made by the Central Economic Working Conference, maintain the stability and consistency of the macro-economic policies, further enhance the foresight, relevance and flexibility of the macro policies, and make our efforts to promote a sound and fast growth of the national economy.

(china.org.cn July 17, 2008)