Explanatory Notes on Main Statistical Indicators

Comparable Prices refer to prices that are used to remove the factors of price change in calculating economic aggregates, so as to facilitate comparison of aggregates over time. Two methods are used for calculating economic aggregates at comparable prices: 1. Multiplying the output of products by their constant prices of certain year; 2. Deflation of data at current prices by relevant price index.

Constant Price refers to the average price of a given product in certain year, which is used, for comparison of output value over time. As the output value at constant prices removes the factor of price changes, it reflects the trend of production development over time. Since 1949, with the changes in general price level, National Bureau of Statistics has issued nationally unified constant prices five times: the 1952 constant prices for 1952-1957; the 1957 constant prices for 1957-1970; the 1970 constant prices for 1971-1980; the 1980 constant prices for 1981-1990; and the 1990 constant prices have been used since 1991.

Annual Average Growth Rate two methods for calculating annual average growth rate are applied in China, one is often called "level approach" or the method of calculating geometric average, which is derived by comparing the level of the last year of the interval with that of the beginning year; the other is called "accumulative approach" or algebraic average or equation method, which is derived by the summation of the actual figure of each year in the interval divided by the figure in the base year. Usually the results calculated by the two methods are fairly close, but they differed sharply when uneven economic development occurred with striking fluctuations in growth.

The average annual growth rates listed in this statistical yearbook are calculated by level approach. The base years are not listed when the years are listed for average annual growth rates.

Gross National Income (GNI) also known as gross national product, refers to the final result of the primary distribution of the income created by all the resident units of a country(or a region) during a certain period of time. The value-added created by the resident units of a country engaged in production activities is distributed, during the primary distribution, mainly to the resident units of that country, while p art of it is distributed to the non-resident units in the form of production tax and import duties (minus subsidies to production and import), remuneration for the labourers and property income. At the meantime, a part of the value-added created abroad is distributed to the resident units of the country in the form of production tax and import duties (minus subsidies to production and import), remuneration for the labourers and property income. The concept of gross national income is thus developed, which equals to the gross domes tic product plus the net factor income from abroad. Unlike the gross domestic product which is a concept of production, the gross national income is a concept of income.

Gross Domestic Product (GDP) refers to the final products at market prices produced by all resident units in a country(or a region) during a certain period of time. Gross domestic product is expressed in three different forms, i.e. value, income, and products respectively. GDP in its value form refers to the total value of all goods and services produced by all resident units during a certain period of time, minus the total value of input of goods and services of the nature of non-fixed assets; in order term, it is the sum of the value-added of all resident units. GDP in the form of income includes the income created by all resident units and distributed to resident and non-resident units. GDP in the form of products refers to the value of all goods and services for final consumption by all resident units minus the net exports of goods and services during a given period of time. In the practice of national accounting, gross domestic product is calculated with three approaches, i.e. production app roach, income approach and expenditure approach, which reflect gross domestic product and its composition from different aspects.

Three Industries In China economic activities are categorized into following industries:

Primary industry: refers to agriculture, forestry, animal husbandry and fishery.

Secondary industry: refers to mining and quarrying, manufacturing, production and supply of electricity, water and gas, and construction.

Tertiary industry: refers to all other economic activities not included in primary or secondary industry.

GDP Calculated with Expenditure Approach refers to the method of measuring the final results of production activities of a country(region) during a given period from the perspective of final use. It includes final consumption, total capital formation and net export of goods and services, i.e.

Final Consumption refers to the total expenditure of resident units for purchases of goods and services from domestic economic territory and abroad to meet the requirements of material, cultural and spiritual life. It excludes the expenditure of non-resident units on consumption in the economic territory of the country. The final consumption is classified into household consumption and government consumption.

Household consumption refers to the total expenditure of resident households on the final consumption of goods and services. In addition to the consumption of goods and services bought by the households directly with money, the households consumption also includes expenditure on goods and services obtained by the households in other ways, i.e. the so-called imputed consumption expenditure, which includes the following:(a) the goods and services provided to the households by the employer in the form of payment in kind and transfer in kind; (b)goods and services produced and consumed by the households themselves, in which the services refer only to the owner-occupied housing and domestic and individual services provided by the paid household workers ; (c) financial intermediate services provided by financial institutions; (d) insurance services provided by insurance companies.

Government Consumption refers to the expenditure on the consumption of the public services provided by the government to the whole society and the net expenditure on the goods and services provided by the government to the households free of charge or at low prices. The former equals to the output value of the government services minus the value of operating income obtained by the government departments. The latter equals to the market value of the goods and services provided by the government free of charge or at low prices to the households minus the value received by the government from the households.

Total Capital Formation refers to the fixed assets acquired minus those disposed and the change in inventory, including the total fixed assets formation and the increase in inventory.

Total Fixed Capital Formation refers to the value of fixed as sets acquired minus those disposed of during a given period. Fixed as sets are the assets produced through production activities with specified unit value which could be used for over one year, excluding natural assets. Total fixed capital formation can be categorized into total tangible capital formation and total intangible capital formation. The total tangible capital formation include the value of the construction projects, installation projects completed and the equipment, apparatus and instruments purchased as well as the value of land improved, the value of draught animals, breeding stock, animals for milk, wool and for recreational purpose, and the newly increased forest with economic value during a given period. The total intangible capital formation includes the prospecting of minerals, the acquisition of computer software minus the disposal of them.

Increase in Inventory refers to the market value of the change in inventory of resident units during a given period, i.e. the difference of value between the beginning and the end of the period minus the current gains due to the change in prices. The increase in inventory can be positive or negative. A positive value indicates the increase in inventory while a negative value indicates the decrease in stock. The inventory includes the raw materials, fuels and reserve materials purchased by the production units as well as the inventory of finished products, semi-finished product s, work-in-progress, etc.

Net Export of Goods and Services refers to the difference of the exports of goods and services minus the imports of goods and services. The imports include the value of various goods and services sold or gratuitously transferred by the resident units to the non-resident units. The imports include the value of various goods and services purchased or gratuitously acquired by the resident units from the non-resident units. Because the provision of services and the use of them happen simultaneously, the acquisition of services by the resident units from abroad is usually treated as import while the acquisition of services by non-resident units in this country is usually treated as export. The export and import of goods are calculated at FOB.