Economy & Gross Domestic Product
1997-98, Asia hit a financial crisis that seriously impacted the Asian
economy. This prompted the Chinese government to launch its
expansionary fiscal policy plan. The heavy government spending kept
stable economic growth. The Gross Domestic Product (GDP) of the year
2002 was 10,239.8 billion yuan, up by 8 percent over 2001. Of this
total, the value-added of the primary industry was 1,488 billion yuan,
up by 2.9 percent. The value-added of the secondary industry was 5,298
billion yuan, up by 9.9 percent. The value-added of the tertiary
industry was 3,453 billion yuan, up by 7.3 percent. GDP has
risen from 362.4 billion Yuan in 1978 to 13.7 trillion in 2004.
Indviduals have also become richer, with annual GDP per head rising
during this time from 379 Yuan to 10,502 Yuan.
Asian Development Bank (ADB) predicts that China's economic growth will
slow to seven percent in 2002 but will pick up to 7.4 percent in 2003,
boosted by strong domestic demand and World Trade Organization (WTO)
membership. The slower recovery of the global economy after a U.S.-led
recession will force China to continue its expansionary fiscal policy
into 2002 and 2003. The fiscal deficit will remain under three percent
of gross domestic product (GDP), which is under control. Inflation is
likely to remain moderate at between one to 1.5 percent as tariff
liberalisation pushes import prices lower. The projected growth
in domestic consumption and investment will be around 9-10 percent for
2002 and 2003. China's entry into the WTO will boost the value of
annual GDP by between one to two percent in the long-term as its export
markets grow and more jobs are created.
The country's first production
census discovered at the end of 2005 that GDP was grossly
underestimated due to inaccount of the rapid growth of the services
sector. As a result, growth rates for 2003-2005
were recorded at around 10% per year. Despite efforts to cool the
overheating economy, the offically recorded GDP growth rate was 11.4%
2008 the global economic crisis began to reduce China's growth rate. In
the face of forecasts that this might drop below the rate at which
school leavers can be absorbed by the growing economy (7%-8%) the
government decided to pump 4 trillion Rmb 4 into the economy in the
form of an economic stimulus package consisting largely of investment
in fixed infrastucture and human capital.
preliminary estimate for real GDP growth was 9%. This was revised
upwards to 9.6% on 25 December 2009, when current-price GDP in 2008 was
re-calculated to be CNY31,404.5 billion.
Income & Allotment
living standard of urban and rural households continues to improve,
reaching the level of moderate prosperity as a whole.
Despite the Global
Financial Crisis in 2008, the pace of growth in the
average salary in China and living standards has remained intact (China
Statistical Yearbook released in Oct
to the report, the annual growth rate of the national
average salary remains at 17.23% in 2008.
There are also significant growths in the average salary level in the
financial industry with Beijing leading the league with
37.19% increase compare to the previous year.
The top two
industries with the highest paying salary and the
fastest growth in China are the Financial Industry and the IT
In 2003, the
National Average Salary for the financial industry was
$22,457, compare to $61,841 in 2008. Average salary in this category is
increasing by 22.46% per year.
In 2003, the
National Average Salary for the IT industry was
$32,244, compare to $56,642 in 2008. Average salary in this category is
increasing by 11.93% per year.
The fastest growing
sector is the security sector in the financial
industry. In 2003, it was $42,582, compare to $172,123 in 2008. Average
salary in this sub category is increasing at a rate of 32.23% per year.