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GDP slower but better
July-26-2011

Beijing's gross domestic product (GDP) growth rate was slower than the rest of the country in the first half of this year. But this should not be seen as a sign of an economic slowdown, rather as a positive result following its efforts to break away from the past GDP-preoccupied economic development model and its determination to promote economic restructuring.

In the first two quarters of this year, Beijing's GDP grew 8 percent year-on-year, the lowest rate among the 18 provinces, autonomous regions and municipalities that have published their economic data for the same period. The 8 percent growth also means the capital is the only region with a growth rate below the country's 9.6 percent average. Tianjin, a neighboring municipality, achieved a growth rate of 16.60 percent during the same period.

Beijing's energy consumption per unit of GDP value has also considerably declined. In the first quarter, the volumes of energy consumed for every 10,000 yuan ($1,551) of GDP in the capital declined 8.4 percent from 2010 and, from January to May, the energy consumption for every 10,000 yuan of industrial value added declined 19.6 percent from the previous year.

The slowed economic growth pace, together with the considerable decline of energy consumption for every unit of GDP, indicate Beijing's economy is still in good shape and its growth is now on a healthier and more sound and sustainable footing.

As the country's capital, Beijing is determined to develop itself into a green, innovative and consumption-driven economy. The municipality set its economic development target for the 12th Five-Year Plan (2011-2015) at 8 percent, the lowest nationwide.

As part of its efforts to expedite such much-needed economic transformation, Beijing has imposed a conditional ban on residents' purchases of houses and vehicles. It has also moved the Shougang Group, a long-time source of air pollution, to Tangshan, Hebei province. The three moves are estimated to have contributed 1.8 percent to the decline of Beijing's GDP growth.

As a result of its years-long green efforts, Beijing's energy consumption for very 10,000-yuan GDP decreased to 0.582 from 0.792 tons of standard coal, or a decline of 26.59 percent, the largest drop compared with other provincial-level regions.

Beijing's economic restructuring has been in the context of the country's economic restructuring. In its 12th Five-Year Plan, the Chinese government has emphasized economic and industrial restructuring toward a greener, more efficient and lower carbon economy and boosting domestic demand.

After decades of sustainable and rapid economic growth, China is poised to reduce its dependence on GDP and shift its focus from the past pursuit of economic quantity to economic quality.

In this regard, Beijing has made a substantial step forward and it is expected the country's other regions will follow suit.

 
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