GF 323
CONFIDENTIAL
機密
CRC INF 12/93 (CEC 7/93)
Summary of Major Developments in China's Economy and Hong Kong China Economic Relations
in the Second Quarter of 1993
(1)
China's
economy
showed clear indications
of
(2)
(3)
(4)
overheating in the second quarter of 1993. For the
first half as a whole, the real growth rates of gross
domestic product and gross industrial output, at 13.9%
25.1% respectively, exceeded considerably the
corresponding annual growth targets of 8-9% and 14% as
stated in the current five-year plan (paragraphs 1
to 3).
and
The substantial increase in fixed asset investment was
providing the main impetus to growth (paragraph 5). A loose monetary and credit position, in a financial
sector which was very much underdeveloped and liable
been accommodating the investment boom
to
abuse, had
(paragraph 11).
Underpinned by a substantial rise in workers' payroll,
consumer spending also showed a strong increase lately
(paragraph 6). In the first half of 1993, retail
sales grew by 21.6% in value terms or about 10.5% in
real terms. The latter increase nevertheless remained
that of 22.2% in light industrial output.
Thus, quite unlike the previous economic boom in
1987
88, there was still no shortage in the overall
supply of consumer goods against demand.
slower than
The
national inflation rate continued to accelerate,
from 8.6% in the first quarter of 1993 to 12.4% in the
second quarter. Inflation was consistently higher in
the major cities, averaging at 15.7% and 19.1%
respectively in the first two quarters (paragraph 7).
CONFIDENTIAL
機密