REPORT ON THE IMPLEMENTATION OF THE 2004 PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT AND ON THE 2005 DRAFT PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT     

    (Third Session of the Tenth National People's Congress, March 5, 2005)     

    National Development and Reform Commission     

    Fellow Deputies,

    The National Development and Reform Commission has been entrusted by the State Council to submit this report to the Third Session of the Tenth National People's Congress (NPC) on the implementation of the 2004 plan for national economic and social development and on the 2005 draft plan for national economic and social development for your examination and approval and also for comments and suggestions from the members of the National Committee of the Chinese People's Political Consultative Conference.     

    I. Implementation of the 2004 Plan for National Economic and Social Development

    Under the leadership of the Communist Party of China (CPC), thepeople of all our ethnic groups earnestly carried out the Plan forNational Economic and Social Development adopted at the Second Session of the Tenth NPC in 2004. We established and implemented ascientific outlook on development, strengthened and improved macroregulation, and worked hard with one heart and one mind to promote sustained, rapid, balanced and sound development of the national economy and all-round social progress. On one hand, outstanding economic problems were alleviated and negative, destabilizing factors were held in check, and on the other, the national economy continued its excellent trend of rapid growth, good performance and strong vitality. By and large, the 2004 plan was implemented satisfactorily. Due largely to substantial increases in investment and exports, China's GDP reached 13.6515 trillion yuan in 2004, representing a year-on-year rise of 9.5 percent and exceeding the target set at the beginning of that year.

    There were 9.8 million urban residents entering the workforce for the first time, 800,000 over the target; and the registered urban unemployment rate was 4.2 percent, 0.5 percentage points below the target. Influenced by the rise of grain prices and soaring oil prices on the international market, the consumer price index rose by 3.9 percent, slightly higher than the target of around 3 percent. Total volume of imports and exports increased by 35.7 percent due to the sustained world economic recovery and China's rapid economic growth. 

    1. The economy grew rapidly yet steadily, and economic performance improved remarkably. Central authorities resolutely decided upon and promptly adopted a series of measures for strengthening and improving macroregulation, specifically to address the problem of overheating in fixed asset investment in the first quarter. As a result, the excessive growth in investmentwas curbed, the growth rate of fixed asset investment gradually declined, and consumer demand revived. Total investment in fixed assets for the country totaled 7.0073 trillion yuan, an increase of 25.8 percent over the previous year but a decline in the growthrate of 1.9 percentage points. In the fourth quarter, it increased by 22.6 percent, 20.4 percentage points less than the first quarter. Retail sales of consumer goods totaled 5.395 trillion yuan, an increase of 13.3 percent, or 10.2 percent in real terms after adjusting for price changes, up by one percentage point over the previous year. National revenue reached 2.6356 trillion yuan, up 21.4 percent. Large industrial enterprises generated 1.1342 trillion yuan in profits, an increase of 38.1 percent.