英语论文网

year. In addition, the inflow of foreign direct investments (FDI) declined rather unexpectedly after a few years of sustained growth from 2009 to 2011. Internally, asset bubbles, especially high house prices, rising land and labour costs, and currency appreciation reduced China’s international competitiveness. Numerous small and medium sized enterprises specialising in export processing in Guangdong and Zhejiang were closed down or downsized due to rising production costs and weak foreign demand.Although China’s gross domestic product (GDP) reached a record high at 52 trillion RMB, or $8.3 trillion using the current nominal exchange rate between the US dollar and RMB, it represented a real growth rate of 7.8%, the lowest level since 1999. GDP growth started to slow down from the first quarter of 2010 for 11 quarters in a row, declining from 11.9% to only 7.4% in the third quarter of 2012. The growth rate rose to 7.9% in the last quarter of the year, raising hope for China to avoid a monolithic decline in its long term economic expansion (Figure 1).

Although economic expansion slowed down significantly, it still outperformed many major economies in the rest of world by a big margin. For instance, GDP growth in the US, Euro zone, India, Russia and Brazil were respectively 2.3%, -0.4%, 4.5%, 3.6% and 1.0% in 2012. In the same year, China’s GDP accounts for 9.5% of the world’s total, up by 0.7 percentage points from 2011. China’s per capita GDP measured by the US dollar in current prices rose from 5,500 in 2011 to 6,100 in 2012.

The value-added of agriculture, industry and services was respectively 5.2 trillion RMB, 23.5 trillion RMB and 23.2 trillion RMB, up by 4.5%, 8.1% and 10.1% over the previous year. Agricultural production maintained a good growth momentum, but industry and services represented a significant slowdown compared to the growth rates in 2011. Total grain output in 2012 reached a historical high of 590 million tons, up by 3.2% from the previous year, realizing a continuing growth for 9 consecutive years from 431 million tons in 2003. Total output of meat (pork, beef, mutton and poultry) was 83.8 million tons, rising by 5.4% from the previous year. Industrial production followed a similar trend of GDP growth (Figure 2). From July 2011, the monthly growth of industrial value-added declined for twelve months in a row, reaching the lowest level of 8.9% in August 2012. Total industrial production of the year was 20 trillion RMB, up by 7.9%.

In response to the slow growth in industrial production and GDP, the People’s Bank of China (PBOC) reversed its policy to maintain a high level of bank reserve/deposit ratio in 2011 to contain inflation and the housing bubble. Following a 0.5 percentage point reduction in November 2011 from 21.5% to 21%, the bank reserve/deposit ratio was lowered twice in February and May 2012 to 20%. In the meantime, the base rate of interest by the central bank was reduced twice in the first half of 2012, with the one-year deposit rate being lowered from 3.5% to 3%, and the one-year lending rate from 6.56% to 6.06%. Although there was a strong argument for further reduction in the bank interest rate and reserve/deposit ratio, no further action was undertaken in the second half of the year. However, in response to the 3rd round of quantitative easing deployed by the European Central Bank and the US Federal Reserves from September 2012, China decided to 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。