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China Power Industry Research Report 2002Q2


II. Main Environment and Factors Influencing Current Power Supply and Demand


Power industry is a basic industry in national economy. Power supply and demand directly condition economic development while the economic development situation has immediate impact on power supply and demand. At present, the main factor influencing power supply and demand are the domestic and overseas economic environment and energy market environment and factors like environment for reforms and policy.
Seen from international economic environment, the global economic situation tends to look up when the American economy picks up. After slow development and even negative growth in three successive seasons, the 30 member states of Asia-Pacific Economic Cooperation Organization have a 0.9% growth rate in GDP fort the first time in the first season of year 2002. Thereinto, the USA and Japan have a growth of 5.6% and 1.4% respectively while the 12 countries in European Union only have a growth rate of 0.2%. But in the second season the growth in American economy falls again to merely 1.1% and international economic situation tends to be strained.
Seen from domestic economic environment, at the end of year 2001 and at the beginning of year 2002, some state departments and research institutes hold prudential attitude towards economic growth this year, predicting a 7% or less growth rate for this year¡¯s economic development. The actual situation in the first half of this year is better than the common anticipation with a GDP of 4.5536 trillion Yuan, increased by 7.8%. Thereinto, the GDP growth is 7.6% in the first season and 8% in the second season. Our power supply and demand is established in domestic demand. Industrial production and sale directly influence power supply and demand while the three factors that influence economy, that is, investment, consumption and export, all have impact on power supply and demand. In the aspect of investment, the social fixed investment is 1.4462 trillion Yuan in the first half of this year, increased by 21.5% and the growth rate increased by 6.4 percentage points. Thererinto, investment on real estate grows by 32.9%, collective investment by 15.8%, individual investment by 19.4%, all obviously higher than corresponding growth rate in year 2001. The contract value of foreign investment reaches USD 44 billion increased by 31.5%, and the actual utilization of direct foreign investment is USD 24.6 billion, increased by 18.7%. In the aspect of consumption, the total consumer retail is 1.9448 trillion Yuan in the first half of this year, increased by 8.6%. Thereinto, urban consumption grows by 9.7% while rural consumption grows by only 6.7%, which indicates a comparative backward growing capacity for rural consumption. And in the aspect of export, the total import and export value is USD 270.7 billion, increased by 12.3%. Thereinto, the growth rate is 14.1% for export and 10.4% for import and the trade surplus is USD 13.4 billion. The growth in foreign trade is mainly pushed by the export of mechanical and electric products and audio and video equipments and the parts and attachments. The export of mechanical and electrical products accounts for 35.65% of total export from January to May with a growth rate as high as 30.3%, which is not predicted at the beginning.



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