October 16, 2008

Chinese industrial output in 2007 up 18.5% YoY

Mr Xie Fuzhan director of the China National Bureau of Statistics said Industrial output jumped up by 18.5% in 2007 or 1.9 percentage points more than in 2006.

Mr Xie said output growth rates were 13.8% for state owned enterprises and organizations in which the state holds controlling stakes and 17.5% for foreign, Hong Kong, Macao and Taiwan invested businesses.

According to Mr Zhang Liqun a researcher at the Development Research Center of the State Council that Industrial output and gross domestic product could both expand more slowly this year as the sub prime crisis and a potential recession in the United States could reduce demand for Chinese exports.

Industrial output growth decelerated from September onward, as the government's tightening measures took effect. The YoY growth figures for September and October were 18.9% and 17.9% respectively. The rates for heavy and light industry were 19.6% and 16.3% respectively.