Rapid expansion continues
OECD Observer

Click for Key Economic Forecast & Indicators

The economy is likely to turn in another year of rapid growth, after a temporary slowdown in the middle of 2004 when businesses were uncertain about the impact of new government polices to control investment. Next year, some slowdown may occur as the result of higher oil prices and tight monetary and fiscal policies.

The impact of the latter may be offset partially by growth in investment in the state-dominated power generation sector and by demand for real estate that is being boosted by negative real interest rates. Consumption should also remain strong, especially in rural areas which have seen the strongest growth incomes for seven years. Finally, export demand is expected to be buoyant as quotas on textile exports will no longer be in force in 2005. Overall, growth is likely to be below potential in 2005, before recovering in 2006. The projected slowdown in domestic food prices should dampen inflation, but continued intervention to stabilise the value of the renminbi brings a risk of higher than expected inflation.

Population (000s), 2003 - 1 292 270

Area (000 sq km) 9 597

Currency Renminbi

GDP (Billion USD), 2003 - 1 468

Life expectancy at birth (Women, Men), 2002 - 73.9, 70.0

Total labour force (000s), 2003 - 752 320

Government type Communist state

Indicators  % change unless otherwise indicated

                                                              2004  2005   2006

Real GDP growth                                    9.2    8.0     8.5

Inflation (mid-year)                              4.2    4.0     4.0

Fiscal balance (% of GDP)                    -2.0   -1.7   -1.7

Current account balance(% of GDP)    1.1     1.8    2.2

Source: OECD

©OECD Observer No 245, November 2004

Economic data

GDP growth: +0.6% Q3 2017 year-on-year
Consumer price inflation: 2.3% Sept 2017 annual
Trade: +1.4% exp, +1.7% imp, Q2 2017
Unemployment: 5.7% Sept 2017
Last update: 14 Nov 2017


Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Suscribe now

<b>Subscribe now!</b>

To receive your exclusive paper editions delivered to you directly

Online edition
Previous editions

Don't miss

  • Papers show “past coming back to haunt us”: OECD Secretary-General Angel Gurria tells Sky News that the so-called "Paradise Papers" show a past coming back to haunt us, but one which is now being dismantled. Please watch the video.
  • The annual OECD Eurasia Week takes place in Almaty, Kazakhstan 23-25 October. Writing in The Astana Times, OECD Secretary-General Angel Gurría urges Eurasia countries to stay the course on openness and international integration, which has brought prosperity but also disillusionment, notably regarding inequality. The OECD is working with this key region, and Mr Gurría urges Eurasia to focus on human capital and innovation to enhance productivity and people’s well-being. Read more.
  • When someone asks me to describe an ideal girl, in my head, she is a person who is physically and mentally independent, brave to speak her mind, treated with respect just like she treats others, and inspiring to herself and others. But I know that the reality is still so much different. By Alda, 18, on International Day of the Girl. Read more.
  • Globalisation’s many benefits have been unequally shared, and public policy has struggled to keep up with a rapidly-shifting world. The OECD is working alongside governments and international organisations to help improve and harness the gains while tackling the root causes of inequality, and ensuring a level playing field globally. Please watch.
  • Read some of the insightful remarks made at OECD Forum 2017, held on 6-7 June. OECD Forum kick-started events with a focus on inclusive growth, digitalisation, and trust, under the overall theme of Bridging Divides.
  • Checking out the job situation with the OECD scoreboard of labour market performances: do you want to know how your country compares with neighbours and competitors on income levels or employment?
  • Trade is an important point of focus in today’s international economy. This video presents facts and statistics from OECD’s most recent publications on this topic.
  • How do the largest community of British expats living in Spain feel about Brexit? Britons living in Orihuela Costa, Alicante give their views.
  • Brexit is taking up Europe's energy and focus, according to OECD Secretary-General Angel Gurría. Watch video.
  • OECD Chief Economist Catherine Mann and former Bank of England Governor Mervyn King discuss the economic merits of a US border adjustment tax and the outlook for US economic growth.
  • The OECD Gender Initiative examines existing barriers to gender equality in education, employment, and entrepreneurship. The gender portal monitors the progress made by governments to promote gender equality in both OECD and non-OECD countries and provides good practices based on analytical tools and reliable data.
  • Interested in a career in Paris at the OECD? The OECD is a major international organisation, with a mission to build better policies for better lives. With our hub based in one of the world's global cities and offices across continents, find out more at .

Most Popular Articles

OECD Insights Blog

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2017