CONFIDENTIAL # 3
CRC INF 3/87
Report on Developments in Hong Kong-China Economic Relations fourth quarter of 1986
General economic developments in China
The first half of 1986 was a relatively quiet
period for the Chinese economy. But the Chinese economy picked up in the third quarter and the pace of economic
growth accelerated sharply in the fourth quarter.
According to figures released by China's State Statistical
Bureau on 20 February 1987, the value of industrial output
(including output from village enterprises) amounted to
Rmb 1,115.7 billion in 1986. The growth rate in real
terms over 1985 was 11.1%, significantly higher than the
target of 7% per annum in the Seventh Five-Year Plan.
Excluding output from village enterprises, the growth rate
in real terms of industrial output was 9.2% in 1986.
Industrial output (excluding output from village
(1) enterprises) in the fourth quarter of 1986 was 15.9%
higher in real terms than in the same quarter in 1985.
This is much higher than the year-on-year growth rates of
4.4%, 5.3% and 8.8% respectively in the first three quarters of 1986. The value of agricultural output in
1986 was about Rmb 394.7 billion. The growth rate in real
terms over 1985 was 3.5%, lower than the target of 6% per
annum in the Seventh Five-Year Plan. Total grain output reached 391 million tonnes in 1986, 12 million tonnes or
3% more than in 1985. National income amounted to Rmb 779
billion in 1986, 7.4% higher in real terms than in 1985.
(1) The quarterly industrial output figures are also from China's State Statistical Bureau but they differ from the annual figures because unlike the latter, output from village enterprises is not included.
CONFIDENTIAL #B