2
4.
(1)
·
Despite the limitations in China's economic
statistics generally the indicated growth rate of national income, at 12.9% p.a. in money terms (about 9 to 10% p.a. in real terms) during the years 1981-85 covered by its Sixth Five-Year Plan was significant enough to suggest that considerable real growth had indeed taken
place. The corresponding growth rate of China's total industrial and agricultural output was 13.4% p.a. in money
terms.
5.
This achieved growth rate is considerably above the planned target growth rate of 4% p.a. In the Sixth Five-Year Plan. The Sixth Five-Year Plan orginally aimed at only moderate growth but with great importance attached to economic stability and co-ordination among different economic sectors. As well as the growth rate being faster than planned, China has not been successful in meeting the Plan's objectives. The very rapid growth in aggregate demand, and in economic activities generally, has also aggravated some old problems and created new problems for the still relatively inflexible Chinese economy.
(1)
It is possible that part of the growth of China's national income recorded in recent years is merely the result of technical improvements in the national accounting system, in that a larger proportion of transactions carried out in the economy are now being captured.
6 F. 12
CONFIDENTIAL #3