GF 323

CONFIDENTIAL

機密

CRC INF 3/93

(CEC 1/93)

Report on Developments in

China's Economy and Hong Kong - China Economic Relations

Fourth Quarter of 1992

(I) General economic developments in China

(a) Overall view

The performance of China's economy in the fourth

quarter of 1992 was characterised by a continued rapid

growth in the gross

domestic product (GDP), a strong

upsurge in consumer

depreciation

inflation.

impressive

increase

of the

demand and imports, a sharp

Renminbi, and a higher rate of

For 1992 as a whole, China's GDP registered an

12.8% in real terms, the largest

largely

gain of

since

domestic-demand-led,

the main impetus.

The growth was

1985.

with fixed asset investment providing This, coupled with the relaxation of

import controls, led to a marked increase in China's import

demand and hence a

surplus in 1992.

marked reduction in its visible trade

The buoyant economy also gave rise to pressures on wages and prices, although the overall inflation rate prevailing in the year was still not particularly high.

greater

2.

which

(b) Domestic sector

The strong momentum of economic growth in China,

was evident in the first three quarters of 1992, was

well sustained into the fourth quarter. For 1992 as a whole, China's gross domestic product (GDP) was estimated

at Rmb 2,393.8 billion (at current prices), giving an increase of 12.8% in real terms over 1991(1)

Its per

(1)

Unless stated otherwise, the growth rates quoted hereafter are on a year-on-year comparison.

CONFIDENTIAL **

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