Press Conference on Shandong Province`s Economic Operating Situation in the First Half of This Year

(At 9.30 pm on July 25, 2008 at the Minor Auditorium on the 4th floor of the Nanjiao Hotel Club)

The press conference was chaired by Zhang Dekuan，deputy Secretary-General of the Provincial Government, director of the Emergency Office, and spokesman of the Provincial Government.

Zhang Dekuan: Good morning, friends from the media, ladies and gentlemen. What is our province`s economic operation situation in the first half of this year? Did the expected result of macro-control appear? These are questions that friends from the media and people from all walks of life are concerned about. Today, we hold a provincial government press conference, and have specially invited Mr. Liu Xinghui, spokesman and deputy director of the Provincial Statistical Bureau, to give a briefing on our province`s economic operation situation in the first half of this year and answer journalists` questions. First of all, we have Mr. Liu Xinghui give a briefing on the basic situation of the whole province`s economic operation in the first half of this year.

Liu Xinghui: Good morning, friends from the media. Now I`ll give a briefing on the situation of our province`s economic operation in the first half of this year. According to our preliminary calculation and the assessment of the State Statistical Bureau, the whole province realized a gross output value of 14736.5, an increase of 13.8 percent, and the growth rate fell by 0.9 percentage points as against the same period of last year. The primary industry increased by 1347.7 , an increase of  0.2  percentage points; the second industry increased by 8481.1 , and the growth rate fell by 1.9 percentage points; the tertiary industry increased by 4907.7, an increase of 0.6 percentage points.

Liu Xinghui: First, the rural economy developed steadily and there was a good harvest of summer grain crops. In the first half of this year, agriculture, forestry, animal husbandry and fishery realized a gross output value of 243.7 billion yuan, an increase of 3.7 percent.

Liu Xinghui: Second, industrial production operated smoothly and industry structure was further improved. In the first half of this year, the whole province’s above-scale industries realized an added value of 820.78 billion yuan, an increase of 18.5%, of which, the added value of light industry is 263.57 billion yuan, an increase of16.1 percent, and the added value of heavy industry is 557.21 billion yuan, an increase of 19.8 percent.

Liu Xinghui: Third, investment in fixed assets increased moderately and the structure constantly optimized. In the first half of this year, the total investment in fixed assets was 700.24 billion yuan, an increase of 21.5 percent. Of the investment, 577.8 billion yuan was made in cities and towns, an increase of 21.7 percent. More investment was made in the primary and tertiary industries, and the investments are respectively 3.8 percent and 39.8 percent of the total, which are respectively an increase of 1.0 percentage point and 4.8 percentage points.

Liu Xinghui: Fourth, the consumer goods market was prosperous and stable, and urban and rural consumption grew relatively quickly. Since the beginning of this year, the total retail sales of consumer goods continued last year`s good momentum of rapid development, growing more and more quickly month by month. In the first half of this year, the retail sales completed 494.29 billion yuan, an increase of 23.4 percent, and an increase of 6.4 percentage points as against the same period of last year.

Liu Xinghui: Fifth, the development of foreign trade maintained a good momentum and the trade surplus gradually declined. In the first half of this year, the province`s import and export realized a total of 74.35 billion U.S. dollars, an increase of 35.9 percent and an increase of 10.1 percentage points as against the same period of last year.

Liu Xinghui: Sixth, there was basically a balance between financial revenue and expenditure, the overall financial operation was smooth, and the structure of financial revenue and expenditure constantly optimized. In the first half of this year, the province realized a local revenue of 106.74 billion yuan, an increase of 23.9 percent, and an increase of 0.1 percentage point as against the same period of last year. The overall financial operation was smooth. By the end of June, the balance of various RMB deposits was 2.51201 trillion yuan in the province`s financial institutions, an increase of 304.8 billion yuan in comparison with the beginning of this year and an increase of 52.5 percent as against the same period of last year.

Liu Xinghui: Seventh, the efficiency grew, employment increased, and the income was higher. The efficiency of industrial enterprises continuously developed. In the first half of this year, the above-scale industries realized a business income of 3.03882 trillion yuan, an increase of 34.0 percent, with a profit of 209.91 billion yuan which increased by 27.0 percent, and a pre-tax profit of 336.95 billion yuan which increased by 31.0 percent. Employment increased steadily. By the end of June, 796,000 more people had been employed in cities and towns, completing 79.6 percent of the annual plan. Residents’ income maintained rapid growth. In the first half of this year, the urban resident had a disposable income of 8,103 yuan per capita, an increase of 15.3 percent, an increase of 0.9 percentage point as against the same period of last year.

Liu Xinghui: Eighth, positive progress was made in energy saving and pollution reduction. The first annual energy-saving task was completed in 2007. The whole province`s the energy consumption per ten thousand yuan GDP decreased to the equivalent of 175 tons of standard coal, a decrease of 4.54% compared with last year. The COD and SO2 emitted were reduced respectively by 116,900 tons and 275,200 tons in comparison with last year, a decrease of 5.04 percent and 7.12 percent respectively.

Liu Xinghui: Ninth, the consumer price decreased, and the purchasing price of industrial products, raw materials, fuels and power rose by a big margin.

Liu Xinghui: The above are the nine characteristics of our province`s economic operation in the first half of this year. Generally speaking, the development of our province`s economy is basically good and it is moving in the expected direction of macro-control.

Zhang Dekuan: Today`s news conference is over. Thank you!