Full text: Report on national economic, social development

1. The expansion of domestic demand effectively stimulated economic growth.

Consumer spending kept rising. We implemented strong and wide-reaching measures to encourage consumption of home appliances, motor vehicles, energy-efficient products and housing, optimized the market consumption environment, and effectively unleashed people's consumption potential, especially in rural areas. Retail sales of consumer goods totaled 12.5343 trillion yuan, up 15.5% from the previous year, 1.5 percentage points higher than planned, and an increase of 16.9% in real terms after adjusting for price changes. A total of 13.645 million motor vehicles were sold, up 46.2%; nearly 90 million home appliances were delivered by manufacturers listed in the national program to subsidize rural residents' purchase of home appliances, with total sales for the year exceeding 150 billion yuan; the total floor area of commodity housing sold throughout the country was 937.13 million square meters, an increase of 42.1%, which in turn stimulated the consumption of building materials, decorative materials, furniture and other commodities. Market prices were basically stable, with the consumer price index (CPI) falling 0.7% for the year, 4.7 percentage points lower than planned.

Investment grew rapidly. Total investment in fixed assets across the country reached 22.4846 trillion yuan, up 30.1% from the previous year, and 10.1 percentage points higher than planned. Fixed-asset investment in urban areas was 19.4139 trillion yuan, up 30.5%. Specifically, investment in primary, secondary and tertiary industries increased by 49.9%, 26.8% and 33% respectively. To implement the plan of investing an additional 4 trillion yuan over two years, we made a total of 924.3 billion yuan of central government investment in 2009, 503.8 billion yuan more than the budgeted figure for the previous year. This investment was divided as follows: the construction of low-income housing, projects to improve the lives of rural residents, rural infrastructure and social programs accounted for 44%; independent innovation, restructuring, energy conservation, emissions reduction and ecological improvement accounted for 16%; major infrastructure projects accounted for 23%; post-disaster recovery and reconstruction work accounted for 14%; and other public spending accounted for 3%. Expanded government investment directly boosted immediate demand, guided and stimulated investment from non-government sources, and played a crucial role in promoting the stability and recovery of the economy. At the same time, it shored up weak links in economic and social development and strengthened the foundations for long-term development.

The economic growth rate increased each quarter. It rose by 6.2%, 7.9%, 9.1% and 10.7% respectively compared with the previous year's quarters. GDP for the year was 33.5353 trillion yuan, an increase of 8.7% over the previous year and 0.7 percentage points higher than planned. Of this total, the value-added of primary, secondary and tertiary industries increased by 4.2%, 9.5% and 8.9% respectively, and 1.2, 0.9 and 0.3 percentage points higher than planned. The contributions of consumption and investment to economic growth were 4.6 and 8 percentage points respectively, which offset a 3.9-percentage point shortfall arising from a decline in net exports. Government finances also played an important role in economic development. National revenue for the entire year hit 6.85 trillion yuan, up 11.7%, 3.7 percentage points higher than the budgeted figure, and the government deficit was kept below the budgeted amount; the broad money supply (M2) was increased by 27.7%, 10.7 percentage points higher than planned, and RMB loans totaling 9.594 trillion yuan were granted in 2009. Economic performance improved gradually. The profits of large industrial enterprises stopped declining, began increasing again and reached 2.59 trillion yuan for the period from January to November. Compared to the previous year, profits grew in 30 of 39 large industries, and enterprises operating at a loss reduced their losses by 33.5%.