Report on the Implementation of the 2017 Plan for National Economic and Social Development and on the 2018 Draft-Plan for National Economic and Social Development
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REPORT ON THE IMPLEMENTATION OF THE 2017 PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT AND ON THE 2018 DRAFT-PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT Delivered at the First Session ef the Thirteenth National People's Congres.r on March 5, 2018 National Development and Reform Commission The official version of this report will be released by Xinhua News Agency. Esteemed Deputies, The National Development and Reform Commission has been enttusted by the State Council to deliver this report on the implementation of the 2017 plan and on the 2018 draft plan for national economic and social development to the First Session of the 13th National People's Congress (NPC) for your deliberation. It also invites comments from the members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC). I. Implementation of the 2017 Plan for National Economic and Social Development Last year, in the face of complex and volatile situations at home and abroad, all regions and departments, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, continued to strengthen their consciousness of the need to maintain political integrity, think in big-picture terms, follow the leadership core, and keep in alignment, and thoroughly studied and implemented Xi Jinping Thought on Socialism with Chinese Characteristics for the New Era and the guiding principles from the 19th National Party Congress. In accordance with the arrangements of the Central Economic Work Conference and the Report on the Work of the Government, we continued to apply the underlying principle of pursuing progress while ensuring stability, stuck firmly to the new vision of development, and earnestly implemented the 2017 Plan approved at the Fifth Session of the 12th NPC, while also acting in line with a review of the Plan by the NPC's Financial and Economic Affairs Committee. With the focus on improving the quality and effect of development and pursuing supply-side sttuctural reform as our main task, we made coordinated moves to maintain stable growth, promote reform, make sttuctural adjustments, improve living standards, and guard against risks. Economic performance was stable but strong, sustained good momentum, and surpassed expectations. The main targets and tasks in economic and social development for the year were accomplished, and implementation of the 2017 Plan was successful overall. 1. We jot11sed on developing new and improved methods of macro n:gulation, and ensured the economy operated within an appropriate range. Thanks to the solid strides we made in economic monitoring, forecasting, and early warning, we were able to correctly grasp the trends and changes in both the international and domestic economic environments. On the basis of range-based regulation, we strengthened targeted, well-timed, and precision regulation. We made greater use of a combination of fiscal, monetary, consumption, investment, and other macro policies, ensured continuity and stability between these policies, and focused closely on preventing and controlling risks in key areas, thus ensuring a stable economic performance. 1 1) Economic growth was kept within an appropriate range. China's gross domestic product (GDP) reached 82.7 ttillion yuan, an increase of6.9% and in line with our projected target. Figure 1. GDP and Growth Rate Trillion -GDP -0-Growth Rate Yuan % 25 23.4582 8 7.8 20 7.6 7.4 15 7.2 7 10 6.8 6.6 5 6.4 6.2 0 6 Quarter I Quarter2 Quarter3 Quarter4 Fiscal policy was made more proactive and effective, the structure of government expenditures was adjusted and improved, and guarantees for expenditures on key projects and the people's wellbeing were strengthened. Revenue in China's general public budgets totaled 17.26 ttillion yuan, an increase of 7.4%; and the fiscal deficit was 2.38 ttillion yuan, which is the same as the budgeted figure. A prudent and neutral monetary policy stance was maintained, with liquidity remaining basically stable and growth of aggregate financing and credit staying at a steady and appropriate level. We made use of differential policies, such as targeted cuts to required reserve ratios and relending to support agriculture, small and micro businesses, and pov~rty reduction efforts; and we increased financial support for key sectors and weak links. At the end of December 2017, the M2 money supply had increased by .8.2% and aggregate financing in the economy by 12%. There was a marked improvement in the performance of enterprises: Large industrial enterprises (those with annual revenue from their main business operations of 20 million yuan or more) recorded profits of 7.52 ttillion yuan in 2017, a 21% increase, and 12.5 percentage points higher than the previous year. The fundamental role of consumption in driving economic growth was continuously enhanced. Service consumption in wellbeing industries, such as tourism, culture, sports, health, elderly care, and education and training, further improved both in terms of quality and scale. Total retail sales of consumer goods grew by 10.2% in 2017, and the contribution of final consumption to economic growth reached 58.8%. 2 Box 1: Consumption in Wellbeing Industries • Implemented the campaign on improving and upgrading rural tourism, supported the construction of facilities for farm-based recreation and rural tourism, improved Tourism the management system for motorhomes, continued to encourage the development of cruise-liner and·yacht tours, and promoted the integrated development of sports and tourism • Supported the conversion of bookstores into cultural complexes, steadily pushed forward trials to boost cultural consumption among urban and rural residents, Culture carried out pilot projects to see cultural heritage organizations develop creative cultural products, and promoted the development of the digital culture industry • Formulated development plans for sports industries such as marathons, cycling, and Sports going on camping excursions by car, and provided support to nongovernmental sectors in organizing large-scale ·sports evonts for the general public . • Encouraged nongovernmental sectors to provide multi-tiered and multifaceted Health medical and health services, extended the implementation of policies on income tax credits for commercial health insurance, and promoted health tourism • · Improved the quality of elderly care services, relaxed access to · the elderly' care services market, and increased the supply of high-quality products and services catering to senior citizens' daily needs in areas like housing, food, and transportation; advanced the reform of state-run elderly care institutions, Elderly Care enc_ouraged the developm,ent of new management practices and service models in state-level pilot areas for providing combined medical and care services for the. elderly; and launched initiatives to boost quality and capacity in the domestic services sector • Deepened reform of educational institutions run by state-owned enterprises, acted to make education and training activities more geared toward starting businesses and Education& making innovations, encouraged the investment of private capital in such education Training and training programs, and oversaw high-level demonstrations of Chinese-foreign cooperation on running schools Multiple measures were taken to increase effective investment; the public-private partnership (PPP) model was extended to more areas in a well-regulated and orderly way; and total fixed-asset investment rose by 7%. The structure of investment was continually improved, and investment in living standards, high technology, and industrial technological transformation grew at a consistently rapid rate, with growth in high-tech manufacturing and equipment manufacturing hitting 17% and 8.6% respectively. 3 Figure 2. Contribution of Consumption and Investment to Economic Growth % --o-- Contribution of final consumption • • •O• • Contribution of grosS capital formation 80 70 · 66.5 59.7 4 58.8 60 · 55.30 ~ •••• . 50 · .. ... 48 8 o • ., '········ 41~ 43.1 47 469 ............. 1() .............................. -o •• 40 . •• " ••• •... 32.1 •••·o 30 20 +-----~-----.-----~----~----~, 2013 2014 2015 2016 2017 2) The general employment sit11ation was positive. The Employment Promotion Plan for the 13th Five-Year Plan Period came into full effect, and ongoing improvements were made to the system of more proactive employment policies. Employment and business-startup services were enhanced, better guarantees were set down to ensure the employment of key groups, and strong progress was recorded in initiatives to cultivate highly skilled personnel and provide vocational training for migrant workers. A total of 13.51 million urban jobs were added over the year, and the registered urban unemployment rate stood at 3.90% at year-end 2017. Figure 3. Urban Jobs Created Million Jobs ,., Annual target 16 11 Increase over the target 13.22 13.12 13.14 13.51 14 12 10 8 6 4 2 2013 2014 2015 2016 2017 4 Per capita disposable personal income reached 25,974 yuan, a 7.3% increase in real terms, and 0.4 percentage point higher than GDP growth. The growth of rural income was yet again faster than that of urban income. Figure 4. Per Capita Disposable Personal Income Levels and Growth Rates Yuan - Per capita disposable personal income -0-Actual growth rate % 30000 30 25974 25000 25 20000 20 15000 15 10000 10 5000 5 0 0 2013 2014 2015 2016 2017 3) Overall price levels were basicalfy stable.