Accounting for about one-tenth of China's economy, Guangdong generated 2.17 trillion RMB (268 billion USD) in 2005, setting a new record in China. Residents' deposits exceeded 2 trillion RMB, fiscal revenue hit 440 billion RMB, and foreign trade volume totaled 400 billion RMB.

Guangdong completed its 10th five-year plan period (2000-2005) with top performance and laid a solid foundation for a successful start of the 11th five-year plan (2006-2010).

Looking back at the past five years

In the past five years, the province reached an annual GDP growth of 13 percent. The provincial GDP hit 2.17 trillion RMB in 2005, doubling that of 2000 and exceeded 2 trillion RMB for the first time. In 2005, fixed asset investments, retail sales of consumer goods and the foreign trade volume in Guangdong amounted to 695.7 billion RMB, 788.3 billion RMB and 428.0 billion RMB, an increase of 16.3 percent, 15 percent, and 19.8 percent respectively over the previous year.

Breakthroughs were achieved in industrial restructuring. The proportion of added value of primary, secondary and tertiary industries shifted from 9.2: 46.5: 44.3 in 2000, to 6.3: 49.5: 44.2 in 2005. A group of large-scale automobile, petrochemical, steel, equipment manufacturing, shipbuilding industries were developed and a number of competitive enterprises started investing abroad.

A total of 35,000 foreign-direct-investment projects were settled in Guangdong in the past five years. So far, 176 of the world's top 500 multinationals have set up 581 ventures in the province. Guangdong has attracted 12.68 billion USD in overseas investments in total last year, a year-on-year rise of 26.6 percent.

The annual foreign trade volume growth reached 21 percent in the past five years while the import-export growth of the province totaled 238.16 billion USD in 2005, a year-on-year rise of 24.3 percent.

High-tech industry expanded rapidly. Guangdong ranked first in the country for the export of hi-tech commodities. In 2005, the province exported 83.59 billion USD worth of new and high-tech products, or 35.1 percent of its total exports and a year-on-year growth of 25.7 percent.
Living standards continued to improve. Urban per capita disposable income rose to 14,770 RMB, a year-on-year increase of eight percent. Moreover, aggregate individual bank deposits were more than two trillion RMB (US$250 billion) in 2005, rocketing 134 percent over 2000.

Tremendous achievements were made in strengthening basic industries and infrastructure development. Several key energy, transportation and communication construction projects were completed and new projects were launched as well, including the giant CNOOC-SHELL petrochemical project.

The development in Guangdong's western and eastern regions as well as the mountainous areas was accelerated. The Pan Pearl River Delta (PPRD) cooperation was also built up as well as the cooperation of Guangdong and other provinces in the areas of business, trade, transportation, labor and tourism.

Planning for the next five years

Guangdong now stands at the threshold of building a moderately prosperous society in all respects. The blueprint for the province's 11th "Five-Year Plan" period (2006-2010) received the go-ahead in February 2006 during the Provincial People's Congress annual session.
Mid and long-term strategy

During the next five years, Guangdong will continue to focus on development of economy, cultural and legal systems and "harmonious society building" and "well-off society building" campaigns. The province will maintain an annual GDP growth rate of no less than 9 percent for the next five years. The per capita GDP will reach 34,400 RMB in 2010, doubling that of 2000. The Pearl River Delta area will take the lead in realizing modernization for the province and the western and eastern regions as well as the mountainous areas will speed up economic development.

Maintaining a 9 percent economic growth rate

Guangdong Province is expecting a nine percent year-on-year increase in its economy during the 11th Five-Year Plan period, down from the previous 13 percent annually. It is the first time for Guangdong to set a single-digit annual economic growth target since the late 1970s. It shows the province's determination to seek sustainable development. The province has been shifting from a labor-intensive economic development mode to a knowledge-worker economy.

Five targets of economic and social development in the 11th Five-Year Plan have been identified.

1. Steady economic development

The provincial GDP will reach 3.35 trillion RMB, with an annual growth rate of 9 percent; the agricultural sector's productive capacity will be enhanced while the industrial sector will continue to optimize their structure and achieve stronger international competitiveness. The service industry will be further developed and the proportion of the primary, secondary and tertiary sectors will be adjusted to 5:50.5:45. The added value of hi-tech industries will account for 22 percent of the provincial GDP and energy consumption per GDP unit will decrease by 13 percent.

2. Continued progress in social programs

Projects in science and technology, education, culture, health and sports are expected to make new progress. The children of schooling age will be covered by a nine-year compulsory education, all free of charge. Gross enrollment rate of higher education is to exceed 28 percent. Meanwhile, people aged 25 and above will have an average 10 years of schooling. The province will work to host a successful Asian Games in 2010.

3. Social and legal systems will be improved

Build up a complete market economic system in 2010. Establish an administrative system to ensure effective decision-making and smooth policy implementation and supervision.

4. Building a harmonious society

Urban and rural development will be more balanced with the proportion of non-agricultural employment increasing to 72 percent. Registered urban unemployment will be kept under 3.8 percent. Urban basic endowment insurance will cover 21 million people and a basic Medicare system will cover over 22 million people, with an annual growth rate of 7 percent and 13.8 percent respectively. A new rural cooperative Medicare system will cover over 85 percent of rural residents.

5. The general living standard will continue to improve

Urban per capita disposable income and rural per capita net income will grow by an annual rate of 5.5 percent and 6 percent respectively. The natural growth rate of the population will be kept to under 6 percent The death rate of infants will be under 10 percent and the province's average life expectancy will be 75 years.

Roadmap for growth in 2006

Guangdong province witnessed a solid start of the 11th "Five-Year Plan" period (2006-2010), as the province's economic growth rate hit 13.7 percent in the fist quarter of 2006, up 1.5 percent compared with the same period last year and 3.5 % higher than China's average level, according to the latest data from Guangdong Statistics Bureau.
In year 2006, Guangdong province expects its GDP to increase by 9 percent and its energy consumption per unit of GDP to drop by 3 percent. The retail sales of commodity goods, fixed asset investments and foreign trade will increase by 14 percent, 15 percent and 10 percent respectively. The CPI, the urban registered unemployment rate and the natural growth of the population will be kept within 3 percent, 3.8 percent and 0.75 percent respectively. The local government's fiscal revenue, the urban residents' disposable income and rural workers' net income will increase by 10 percent, 7 percent and 4.5 percent respectively.

In a bid to fulfill these targets, efforts will be focused on the following six major aspects of work:

1. Enhancing the independent innovation capacity.
The government will strive to strengthen its innovative ability by setting up regional innovation systems and encouraging innovations. Guangzhou and Shenzhen, China's key cities in innovation capacity building, shall seek faster development.

2. Promoting an economic growth mode shift and building a resource-efficient and environmentally friendly society

Efforts will be made to develop regional manufacturing and industrial centers such as the construction of PRD (Pearl River Delta) Hi-tech industry parks, automobile industry bases and a costal petrochemical industry center.
The province will develop industrial clusters by accelerating the growth of large-scale enterprise groups, which includes R&D capabilities and indigenous brand names.
Planners will promote a modern service industry, including sectors like finance, logistics, business and trade, exhibitions and business agencies.

3. Growing globalization

The province will further optimize its investments to attract multinational corporations to invest in hi-tech, petrochemical, automobile and modern service industries. Planners will encourage the exports of high-tech products, software, electrical and mechanical products. The government encourages enterprises to invest abroad, forming manufacture bases, research centers and market networks. Further efforts will also be made to support promising local companies to become multinational corporations. Cooperation in the Pan-PRD and the greater PRD regions will be further strengthened, and the economic and trade ties with ASEAN will be improved.

4. Building a new socialist countryside

Agricultural industries will develop a number of model products and infrastructure projects in rural areas. Economic planners are developing ways to increase rural residents' incomes through various channels. (See P12)

5. Accelerating the development of social programs

Improvements will be implemented in the public health care system and rural health care work, establishing disease prevention and control systems. Public sports programs promoting better health will also be promoted.
Future cultural developments include reforming the culture system, refurnishing culture-related facilities for public use, strengthening culture services in less-developed areas and promoting the Lingnan culture as well as speeding up the development of local culture industries. Skilled workers will also be recruited to work in these projects in remote areas.

6. Building a harmonious Guangdong and safeguarding social stability

Plans call for an increase in employment and reemployment in both rural and urban areas. The social security system will also be adjusted and the social justice security system will be gradually developed.

Editor: Yan