Summary of Guangzhou’s Economic Development in 2007

Summary of Guangzhou’s economic development in 2007 In 2007, our city thoroughly implemented the spirit of the 17th National Congress, consciously practiced Scientific Outlook on Development, fully implemented the central macro-control policies, constantly accelerated the adjustment of economic structure and the transformation of development mode, and made great efforts to deepen reform and open wider to the outside world. The economic operation showed four main characteristics: rapid economic growth, remarkable improvement of benefits, continuous adjustment of structure and gradual improvement of people’s livelihood. However, in the economic operation of our city, there are still some problems that need attention, such as structural contradictions are still outstanding, the ability of independent innovation needs to be strengthened, and it is more difficult to save energy, reduce consumption and reduce emissions. First, the basic judgment is good and fast. According to preliminary accounting, Guangzhou’s GDP in 2007 was 705.078 billion yuan, up by 14.5%, 3.1 percentage points faster than that of the whole country and the same as that of the whole province. Among them, the added value of the first, second and third industries was 16.109 billion yuan, 281.689 billion yuan and 407.280 billion yuan, up by 5.0%, 15.6% and 14.1% respectively. At the same time, the growth rate of local general budget revenue in the city was 7.6 percentage points higher than that of the previous year; The comprehensive index of economic benefits of industrial enterprises above designated size was 225.96, an increase of 24 points over the previous year. It is estimated that the energy consumption per 10,000 yuan GDP in Guangzhou will decrease by 4% year-on-year, and the emissions of sulfur dioxide and chemical oxygen demand will decrease by 8.8% and 2.2% respectively. Supply and demand are booming. From the perspective of production and supply, agricultural production has grown steadily, industrial production has grown rapidly, and the tertiary industry has developed rapidly. From that perspective of demand pull,The consumer market continued to flourish, investment in fixed assets grew steadily, and foreign trade slowed down steadily. Although the growth rate of foreign trade exports has slowed down, the pulling effect of export demand is still obvious. Highly prosperous. In the first quarter to the fourth quarter, the city’s business prosperity index was 145.7, 149.6, 150.9 and 149.1, respectively, and the entrepreneur confidence index was 149.9, 145.0, 152.3 and 148.5, respectively, and the economy continued to operate in a high prosperity zone. Ii. main features (1) rapid economic growth and steady growth of agricultural production. In 2007, the total output value of agriculture, forestry, animal husbandry and fishery reached 28.540 billion yuan, up 5.6% over the previous year, of which the output value of agriculture (planting) was 13.637 billion yuan, the output value of forestry was 420 million yuan, the output value of animal husbandry was 7.022 billion yuan, the output value of fishery was 4.873 billion yuan, and the output value of agriculture, forestry, animal husbandry and fishery services was 2.588 billion yuan, up 3.4% respectively. Industrial production has grown rapidly. First, the total growth rate is fast. In 2007, the city’s industrial enterprises achieved a total industrial output value of 987.057 billion yuan, an increase of 20.0% over the previous year, and the growth rate accelerated by 3.1 percentage points. Second, heavy industry has developed rapidly. The total output value of light and heavy industries was 372.383 billion yuan and 614.674 billion yuan respectively, up by 15.2% and 23.1% respectively, and the growth rate of heavy industry was 7.9 percentage points faster than that of light industry.Third, high-tech industries have developed rapidly. The city’s industrial enterprises realized the output value of high-tech products of 296.309 billion yuan, an increase of 28.7%, 8.7 percentage points faster than the city’s industrial development level. Fourth, the driving effect of automobile manufacturing industry is remarkable. The total industrial output value of the three pillar industries was 386.756 billion yuan, an increase of 24.1%. The output values of automobile, electronics and petrochemical manufacturing industries were 162.226 billion yuan, 83.723 billion yuan and 140.807 billion yuan respectively, up by 37.4%, 1.7% and 26.7% respectively, and their contribution rates to the industrial growth above designated size were 27.20%, 1.73% and 18.81% respectively. At the same time, the auto parts manufacturing industry grew strongly, with an annual output value of 30.915 billion yuan, an increase of 74.4%, which was 54.1 percentage points higher than that of industries above designated size in the city. The tertiary industry developed rapidly. First, the transportation, post and telecommunications industries grew rapidly. In 2007, the city’s freight volume was 456.6403 million tons, an increase of 6.8% over the previous year; Passenger traffic was 511,572,700, an increase of 16.9%; Passenger turnover was 128.924 billion person-kilometers, an increase of 18.1%. The passenger throughput of Baiyun Airport was 30,955,100 passengers, an increase of 18.1%; The airport cargo and mail throughput is 894,900 tons. The annual port cargo throughput was 368,644,100 tons, up by 12.3%, of which Guangzhou Port cargo throughput was 341,362,800 tons. Port container throughput is 9,932,900 TEUs,An increase of 36.9%. In 2001, the revenue from post and telecommunications business reached 25.126 billion yuan, an increase of 8.9%. The second is the rapid growth of tourism. The city’s tourism industry achieved a total revenue of 79.815 billion yuan, an increase of 13.9%. The city received a total of 33.3873 million overnight tourists, an increase of 12.8%; Among them, there were 6,113,300 overseas tourists, an increase of 8.3%. Third, the real estate market is active. The city’s investment in real estate development increased by 26.4%, an increase of 16.8 percentage points year-on-year. The contract value of commercial housing sales in the city was 121.82 billion yuan, an increase of 41.3%. The consumer market continues to flourish. In 2007, the city’s total retail sales of social consumer goods reached 259.500 billion yuan, an increase of 18.9% over the previous year, and the growth rate was 3.9 percentage points higher than that of the previous year, the highest increase since 1996. Among them, the wholesale and retail sales reached 217.865 billion yuan, an increase of 18.8%; The retail sales of accommodation and catering industry reached 41.635 billion yuan, an increase of 19.2%. The city’s wholesale and retail sales totaled 1,099.658 billion yuan, a year-on-year increase of 30.3%. Among the wholesale and retail businesses above designated size in the city, the retail sales of automobiles reached 27.518 billion yuan, up by 25.0%, accounting for 28.6% of the retail sales of wholesale and retail enterprises above designated size in the city, ranking first among all kinds of commodities. The retail sales of gold, silver and jewelry increased by 32.9%, and the retail sales of cultural office supplies increased by 31.1%.The retail sales of sports and entertainment goods increased by 30.8%. Investment in fixed assets grew steadily. In 2007, the investment in fixed assets of the whole society was 186.334 billion yuan, an increase of 9.8% over the previous year, and the growth rate dropped by 1.9 percentage points over the previous year. Among them, the investment in capital construction was 80.064 billion yuan, down by 3.7%; The investment in renovation was 34.714 billion yuan, an increase of 15.3%; The investment in real estate development was 70.38 billion yuan, an increase of 26.4%. The proportion of capital construction, renovation and real estate development investment in the fixed assets investment of the whole society was adjusted from 48.99%, 17.74% and 32.82% in the previous year to 42.97%, 18.63% and 37.77% respectively, and the capital construction investment decreased by 6.02 percentage points compared with the previous year. The construction of key projects progressed smoothly. In the whole year, the investment in key projects in our city was 44.992 billion yuan, with an investment completion rate of 118%. Foreign trade has slowed down steadily. In 2007, the total import and export volume of commodities in the city was 73.494 billion US dollars, up by 15.2% over the previous year, and the growth rate dropped by 4.0 percentage points. Among them, imports were 35.592 billion US dollars, up by 13.4%, and the growth rate dropped by 3.7 percentage points year-on-year; Exports reached US$ 37.902 billion, up by 17.0%, and the growth rate dropped by 4.4 percentage points year-on-year. The trade surplus was $2.31 billion, accounting for 3.14% of the city’s total merchandise import and export. From the perspective of economic types, the export of foreign-funded enterprises is dominant.Accounting for 58.43% of the city’s total exports; The export growth of private enterprises is strong, with an increase of 44.8%. Exports to Japan, the European Union, Hong Kong and other major export markets grew steadily, increasing by 23.7%, 16.2% and 12.6% respectively. The export growth rate of bulk commodities such as furniture and its parts, precious metals or jewelry wrapped with precious metals is higher than the average growth rate of the whole city. The utilization of foreign capital has increased substantially. In 2007, the contracted utilization of foreign capital in the city was 7.153 billion US dollars, up 54.2% year-on-year, with an increase of 27.5 percentage points year-on-year; The actual amount of foreign capital used was US$ 3.411 billion, up by 11.7% and 4.2 percentage points. From the perspective of foreign investment, the real estate industry is far ahead, the manufacturing industry is declining, and the culture, sports and entertainment industries are growing strongly. In 2007, the actual use of foreign capital in the real estate industry in our city was 1.62 billion US dollars, an increase of 2.2 times; The actual use of foreign capital in manufacturing industry was US$ 1.18 billion, down by 30.6%; The actual use of foreign capital in culture, sports and entertainment industry was $67 million, an increase of 18.5 times. (II) Significant improvement in benefits The economic benefits of industrial enterprises have been significantly improved. In 2007, the comprehensive index of economic benefits of industrial enterprises above designated size in the city increased significantly to 225.96, up by 24 points over the previous year; Among them, the comprehensive index of economic benefits of state-owned and state-controlled industrial enterprises above designated size was 401.66, an increase of 69.2 points, which was 175.7 points higher than that of industrial enterprises above designated size in the city. Corporate profits have risen sharply, while losses have decreased.Industrial enterprises above designated size achieved a total profit of 73.308 billion yuan, an increase of 35.9%. The loss of loss-making enterprises was 5.302 billion yuan, down by 7.1%. Fiscal revenue has increased significantly. In 2007, the total fiscal revenue from Guangzhou was 211.6 billion yuan, an increase of 22.4% over the previous year. The city’s general budget revenue was 52.379 billion yuan, an increase of 22.6%, and the growth rate was 7.6 percentage points higher than that of the previous year. Among the general budget revenue, business tax, value-added tax and enterprise income tax were 12.354 billion yuan, 11.150 billion yuan and 5.967 billion yuan respectively, up by 20.2%, 15.3% and 30.9% respectively, and the total contribution rate to the city’s general budget revenue reached 51.4%. Energy consumption is gradually decreasing. Our city pays special attention to energy conservation and emission reduction of key projects, key projects and key enterprises. Signed a target responsibility letter with 100 key energy-consuming enterprises. For newly introduced industrial projects, the examination and approval of energy consumption and pollutant discharge shall be strictly implemented. In combination with the implementation of the strategy of "retreating two into three" in the central city industry, we will accelerate the technological transformation of energy conservation and emission reduction in enterprises. The dependence of economic growth on energy consumption is gradually decreasing. It is estimated that the energy consumption per 10,000 yuan GDP in Guangzhou will decrease by 4% year-on-year, and the emissions of sulfur dioxide and chemical oxygen demand will decrease by 8.8% and 2.2% respectively. (3) The structure has been continuously adjusted and the industrial structure has been further optimized.In 2007, the proportion of added value of Guangzhou’s three industries was adjusted from 2.39?U40.01?U57.60 in 2006 to 2.29?U39.95?U57.76. The proportion of primary and secondary industries decreased by 0.10 percentage points and 0.06 percentage points respectively, and the proportion of tertiary industry increased by 0.16 percentage points. The three major demands tend to develop harmoniously. In 2007, the growth rate of total retail sales of social consumer goods in our city was 3.9 percentage points faster than that of the previous year, the growth rate of fixed assets investment in the whole society dropped by 1.9 percentage points, and the growth rate of commodity exports dropped by 4.4 percentage points, which obviously enhanced the pulling effect of consumer demand on economic growth. The characteristics of heavy industry are outstanding, and the innovation ability is gradually enhanced. The proportion of light and heavy industrial output value in our city is 37.73?U62.27, and the proportion of heavy industry is 1.56 percentage points higher than that of the previous year, with outstanding characteristics of heavy industry. In the whole year, the output value of high-tech products realized by industrial enterprises accounted for 30.02% of the city’s total industrial output value, an increase of 3.01 percentage points over the previous year. It shows that the innovation ability of industrial enterprises in our city has been gradually enhanced. Investment is inclined to the tertiary industry. The proportion of investment in fixed assets in the primary, secondary and tertiary industries was adjusted from 0.11: 27.30: 72.59 in the previous year to 0.06: 21.62: 78.32, and the investment in the tertiary industry increased. The structure of export products was gradually optimized. First, the export of mechanical and electrical products grew rapidly. In 2007, the export of mechanical and electrical products was US$ 19.213 billion.It increased by 18.0% over the previous year, accounting for 50.69% of the city’s total exports. Second, the growth rate of general trade exports is faster than that of processing trade exports. The general trade export of our city was 16.922 billion US dollars, up by 25.3%. The export of processing trade with imported materials and processing trade with imported materials were US$ 5.946 billion and US$ 14.280 billion respectively, up by 6.5% and 13.6% respectively. (4) People’s livelihood has gradually improved, and the living standards of residents have been greatly improved. In 2007, the average wage of employees in the city was 40,187 yuan, an increase of 10.6% over the previous year. The per capita disposable income of urban residents was 22,469 yuan, an increase of 13.2%. The per capita consumption expenditure was 18,951 yuan, an increase of 16.6%. The per capita net income of rural residents was 8613 yuan, an increase of 10.6%. With the improvement of income level, the upgrading of residents’ consumption structure has accelerated. First, the service consumption expenditure in household expenditure has increased rapidly. In 2007, the per capita service consumption expenditure of urban residents in our city was 6698 yuan, an increase of 15.9%, accounting for 35.34% of the total consumption expenditure. Expenditure on education, culture and entertainment services has become a bright spot of consumption. The per capita expenditure on education, culture and entertainment services of urban residents in our city was 3,268 yuan, an increase of 17.5%. Second, consumption hotspots such as automobiles continue to heat up. By the end of 2007, there were 13 cars for every 100 urban households in our city, a year-on-year increase of 30%. The employment situation is stable. At the end of 2007, there were 6,476,900 social workers in the city.An increase of 6.4% over the end of last year. Among them, there were 3,973,400 urban employees, an increase of 10.8%. There are 250,600 registered unemployed people in cities and towns in the city, a decrease of 14,800 from the end of last year; The registered unemployment rate in cities and towns was 2.23%, up 0.17 percentage points from the end of last year. In the whole year, 175,100 registered unemployed people in cities and towns were resettled, of which 56,300 "4,050" people (laid-off and unemployed people over 40 years old for women and 50 years old for men) were employed, and the re-employment rate of registered unemployed people in cities and towns reached 70%. The financial expenditure on people’s livelihood has increased significantly. In 2007, the expenditure on education, social security and employment, medical and health care and environmental protection in the local general budget of our city was 8.06 billion yuan, 7.179 billion yuan, 3.273 billion yuan and 485 million yuan respectively, which increased by 11.1%, 27.4%, 16.0% and 29.0% respectively, accounting for 30.46% of the local general budget fiscal expenditure. Iii. Issues needing attention (1) From the perspective of economic growth, the city’s economy mainly relies on two-wheel drive of industry and service industry, but the internal structure of industry and service industry needs to be further optimized and coordinated. Industry is an important engine of the city’s economic development, while industry is mainly driven by three pillar industries: automobile, electronics and petrochemical. The output value of the three pillar industries accounts for 43.43% of the total industrial output value above designated size. However, the internal development of the three pillar industries in our city is unbalanced.The leading role of electronic product manufacturing industry is weak. From January to May this year, the output value of electronic products manufacturing industry has been declining, and it has turned down to rise since June, but the increase is very small. In 2007, the growth rate of electronic products manufacturing industry above designated size was 18.6 percentage points lower than the city average, 35.7 percentage points lower than that of automobile manufacturing industry and 25.0 percentage points lower than that of petrochemical manufacturing industry. The contribution rate to the industrial growth above designated size in the city is only 1.73%, which is 25.47 percentage points lower than that of automobile manufacturing and 17.08 percentage points lower than that of petrochemical manufacturing. Although Guangzhou’s service industry has dominated, it is far below the level of Beijing and the world average (the added value of the world’s service industry accounted for 67.9% of GDP in 2001). At present, Guangzhou’s service industry is still dominated by traditional service industry, and the proportion of modern service industry is low, which is difficult to meet the requirements of economic transformation and independent innovation. The industrial structure of service industry needs to be optimized urgently. (2) From the perspective of the three major demands, consumption, investment and export keep pace with each other, and the relationship among them tends to be coordinated. However, the export growth rate has dropped significantly due to factors such as the adjustment of export tax rebate policy by the state, the publication of prohibited categories of processing trade and international trade friction. In the second half of the year, the export growth rate of our city dropped significantly. The annual export growth rate dropped by 4.4 percentage points over the previous year and by 5.1 percentage points over the first half of 2007. From the perspective of major export markets, exports to the United States have fallen sharply.In 2007, the export to the United States was the same as the previous year, and the growth rate dropped by 8.6 percentage points compared with the first half of the year. From the main export commodities, steel products, ships and printed circuits were greatly affected, and the annual export growth rate dropped by 82.4, 23.7 and 5.7 percentage points respectively compared with the first half of the year. At the same time, the growth rate of the output value of industrial export products above designated size in the city reached its peak in July, and then it ran at a low speed every month. In 2007, the output value of the city’s industrial export products increased by 14.3%, which was lower than the average growth rate of the city by 5.7 percentage points. It accounted for 21.19% of the total industrial output value, down 1.06 percentage points from the previous year. The export growth rate has dropped significantly, which may slow down Guangzhou’s economic development. (3) From the perspective of the quality of economic operation, the overall quality has improved, but the ability of independent innovation has yet to be enhanced. Cumulative consumer prices have risen month by month, and the "scissors difference" in production prices has increased recently, making it more difficult to save energy, reduce consumption and reduce emissions. The ability of independent innovation has yet to be enhanced. Our city’s independent innovation ability lags behind that of Shenzhen. In 2007, the output value of high-tech products of industrial enterprises above designated size accounted for 32.08% of the total output value of industrial enterprises above designated size. In 2006, the proportion in Shenzhen reached 52.8%. Shenzhen has cultivated a number of well-known large-scale high-tech backbone enterprises at home and abroad with large scale and strong strength, such as Huawei, ZTE and Global Digital. However, our city lacks the drive of well-known large-scale high-tech backbone enterprises at home and abroad. Therefore, Guangzhou urgently needs to complete the transformation of industrialization from comparative advantage to competitive advantage through independent innovation.Cumulative consumer prices are rising month by month. Since the second half of 2007, with the rapid rise of national consumer prices, the cumulative consumer prices in our city have also shown a trend of rising month by month (see Table 1 and Table 2 for details). In 2007, the overall consumer price level of urban residents increased by 3.4% over the previous year, with an increase of 1.1 percentage points over the previous year. Among them, the price of consumer goods rose by 4.4%, and the price of service items rose by 1.1%. In 2007, the overall level of rural consumer prices rose by 3.2%; Among them, the living consumer price rose by 2.8%, and the production consumer price rose by 6.6%. The sharp rise in food prices is the main factor leading to the rise in consumer prices. In 2007, the urban food price in our city rose by 8.9% (up by 1.7% in the same period of last year), which was 5.5 percentage points higher than the total consumer price index of urban residents, directly driving the consumer price of urban residents to rise by 2.93 percentage points. In 2007, the price of rural food in our city rose by 11.5%, which was 8.3 percentage points higher than the total consumer price index of rural residents.Table 1: Monthly price increase in Guangzhou in 2007 Unit:% January, February, April, May, June, August, September, October, November and December, consumer price of urban residents 12.32.82.31.92.44.44.65.354.84.6 Food price 4.04.77.36. 0.8 Table 2: Monthly cumulative price increase in Guangzhou in 2007 Unit:% January, February, March, May, June, August, September, October, November and December, consumer price of urban residents 11.622.12.12.42.733.23.33.4 Food price 4.04.45.45. In 2007, the total ex-factory price level of industrial products in our city rose by 1.4%, an increase of 0.2 percentage points year-on-year; The overall purchase price level of raw materials, fuel and power increased by 4.7%, and the growth rate dropped by 0.2 percentage points year-on-year. The difference between the ex-factory price of industrial products and the purchase price of raw materials, fuel and power in our city gradually increased in the fourth quarter. In December, the ex-factory price of industrial products increased by 2.0% over the same period of last year, and the purchase price of raw materials, fuel and power increased by 7.6% over the same period of last year.The difference between the two increased from 2.5 percentage points in September to 5.6 percentage points. The increase of "scissors difference" in production price will lead to the reduction of profit space of downstream enterprises. It is more difficult to save energy and reduce consumption and emission. The industry with relatively high energy consumption in our city grows significantly faster than the service industry with less energy consumption, especially when the industry is further heavy, the energy consumption increases, which makes it more difficult to save energy, reduce consumption and reduce emissions. (IV) From the perspective of the economic structure of internal and external sources, the exogenous economy has developed rapidly, while the endogenous economy has developed slowly. Among the total industrial output value above designated size in the city, foreign-invested enterprises from Hong Kong, Macao and Taiwan account for 66.39%, and the growth rate (20.0%) is close to the city’s average growth rate, while the growth rate of state-owned enterprises is 7.6 percentage points lower than the city’s average. In particular, since the beginning of this year, the cumulative growth rate of the total output value of private industrial enterprises in our city has been lower than the city average (see Figure 1 for details). It can be seen that at present, the industrial development of our city is mainly driven by exogenous enterprises. In the wholesale and retail, accommodation and catering industries, the development of private economy lags behind the average level of the whole city. The growth rate of private wholesale and retail sales is 12.2 percentage points lower than the city average, and the growth rate of retail sales is 2.3 percentage points lower than the city average; The growth rate of retail sales of private accommodation and catering industry was 0.4 percentage points lower than the city average. (5) From the perspective of reflecting people’s livelihood, although the living standards of residents have been greatly improved and people’s livelihood has been improved, the growth rate of residents’ income is lower than the growth rate of regional GDP; The income gap between urban and rural residents has increased;The prices of agricultural means of production remain high, making it more difficult for farmers to further increase their income. In 2007, the average wage growth rate of employees in our city was 10.6%, the per capita disposable income of urban residents was 13.2%, and the per capita net income of rural residents was 10.6%, which was 3.9, 1.3 and 3.9 percentage points lower than the growth rate of regional GDP respectively. In 2007, the income gap between urban and rural residents in our city changed from 2.55:1 in the previous year to 2.61:1, and the gap further increased. In 2007, the price of agricultural means of production in our city increased by more than 5%. In 2007, the growth rate was 5.9%, 0.7 percentage points higher than the previous year. The high price of agricultural means of production leads to the high cost of agricultural production, which affects the enthusiasm of farmers to invest in agricultural production and makes it more difficult for farmers to further increase their income. (VI) From the perspective of horizontal comparison, some economic indicators are still far behind those of the whole country, the whole province and major cities. In 2007, the total industrial output value of Guangzhou above designated size was 890.522 billion yuan. Among the major cities in China, It ranks seventh behind Shanghai (2,193.863 billion yuan), Suzhou (1,591.469 billion yuan), Shenzhen (1,383.254 billion yuan), Tianjin (1,007.507 billion yuan), Beijing (947.554 billion yuan) and Wuxi (894.511 billion yuan), and ranks eighth with Foshan.The growth rate of gross industrial output value above designated size in Guangzhou (20.3%) is lower than that in the whole province (25.0%), Suzhou (23.3%), Wuxi (23.6%) and Foshan (30.2%). In 2007, the total value of Guangzhou’s merchandise exports was US$ 37.902 billion, which was lower than that of Shenzhen (US$ 168.493 billion), Shanghai (US$ 143.928 billion), Suzhou (US$ 118.884 billion), Beijing (US$ 48.923 billion), Ningbo (US$ 38.255 billion) and Tianjin (US$ 38.255 billion) The growth rate of Guangzhou’s total merchandise export value is 17.0%, which is lower than Ningbo (33.0%), Shanghai (29.7%), Beijing (28.9%), Suzhou (25.6%) and Shenzhen (23.8%), and also lower than the national (25.7%) and provincial (22.2%) averages. In 2007, the general budget revenue of local finance in Guangzhou was 52.379 billion yuan, ranking sixth among major cities in China, lower than Shanghai (210.263 billion yuan), Beijing (149.264 billion yuan), Shenzhen (65.806 billion yuan), Suzhou (54.182 billion yuan) and Tianjin (54.013 billion yuan). The growth rate of general budget revenue of local finance in Guangzhou is 22.6%, which is lower than that of Suzhou (35.4%), Beijing (33.6%), Shenzhen (31.4%), Shanghai (31.4%) and Tianjin (29.6%) and lower than that of the whole province (28.0%).The level of growth. IV. Outlook of Economic Situation in 2008 and Countermeasures and Suggestions Looking forward to 2008, the national economic development will still face a more favorable domestic and international environment. From the international environment, the trend of economic globalization is developing in depth and the world economic situation is generally stable, which is beneficial to the development of our city. However, the risks of the world economy are still increasing gradually. The economic slowdown in the United States, the increasing global inflationary pressure and the intensification of international trade protectionism cannot be underestimated. From the domestic environment, the successful convening of the 17th National Congress and the Olympic Games, the gradual deepening of the reform of the system and mechanism, and the continuous expansion of opening to the outside world will mobilize the enthusiasm and potential of all sectors in developing the economy. Macro-control policies in 2007 will continue to play a role, and the development of individual industries and fields will slow down. 2007 is a year of intensive macro-control policies. In terms of fiscal policy, the export tariffs on some commodities have been increased, the export tax rebate for "two high-tech and one capital" products has been abolished, the export tax rebate rate for commodities that are prone to trade friction has been reduced, and import tax concessions have been implemented for some resource products and major technical equipment products. In terms of monetary policy, the statutory reserve ratio of financial institutions was raised ten times, and the benchmark interest rate of RMB deposits and loans of financial institutions was raised six times. In 2008, a moderately tight monetary policy will be implemented, and land management will also be strengthened. Judging from the development environment of our city, we will fully implement the spirit of the 17th CPC National Congress in 2008, further deepen reform and open wider to the outside world.Vigorously promote independent innovation and structural optimization, strengthen energy conservation and emission reduction and ecological environment protection, and actively improve people’s livelihood. The 2010 Asian Games will be held in our city, and the construction of large-scale Asian Games venues and facilities will be fully launched. The economic development environment of our city in 2008 was generally good. Looking at the economic development environment at home and abroad and in our city, it is predicted that the trend of sustained and rapid economic growth in our city will not change in 2008, and the growth rate may drop slightly; Among the three major demands, export growth may slow down, investment is expected to grow steadily, the consumer market will continue to flourish, and the pulling effect of consumption on economic growth will be further enhanced. In order to ensure sound and rapid economic development in 2008, it is suggested to do the following work in combination with the actual situation of this city while implementing the national macro-control measures: (1) Further adjust the industrial structure and strive to build a modern industrial system. Agriculture should focus on developing characteristic agriculture and agricultural product processing, improving the comprehensive agricultural production capacity and establishing a long-term mechanism to ensure the stable development of animal husbandry, especially pig production, on the premise of stabilizing the grain planting area. Industry should intensify energy conservation and emission reduction, further strengthen the ability of independent innovation, and expand the production of high-tech products and high-processing products. Accelerate the development of service industry, especially the development of emerging service industries such as finance, logistics, exhibition, information transmission and software. (2) maintain a moderate level of foreign trade exports, prevent the impact of excessive deceleration on the overall economy, and continue to guide and promote the transformation of production and operation methods of "two high-tech and one capital" enterprises.Reduce the negative impact caused by the adjustment of export tax rebate. At the same time, adjust the structure of foreign trade. First, strive to expand the export of high-tech products and improve the quality and grade of export products; Second, constantly explore new markets; The third is to develop service trade and establish a mechanism to promote the development of service trade. (3) Effectively raise the income level of residents, expand their purchasing power, continue to increase new jobs, strengthen skills training and expand the scale of employment. We will continue to improve the social security system, raise residents’ expectations for future income growth, and provide dynamic support for domestic demand growth. It is necessary to increase subsidies for low-income groups, prevent them from living in difficulties due to rising prices, and strive to improve their quality of life. We should do everything possible to increase farmers’ income. Strengthen vocational training for farmers, improve their comprehensive quality and vocational skills, and improve the scientific and technological content of agriculture and the comprehensive agricultural productivity; Reasonably guide rural surplus labor to transfer employment to secondary and tertiary industries and cities, and accelerate the process of urban-rural integration. (4) Efforts to maintain the basic stability of the price level should continue to ensure the supply of non-staple food, strengthen the supervision of food quality and market prices, give full play to the guiding role of information in market supply and demand, avoid the ups and downs of consumer goods prices, and prevent prices from evolving from structural increases to inflation. (V) Vigorously support the development of the private economy, create a better development environment for private enterprises, further take effective measures to support the development of the private economy, strive to create a social atmosphere suitable for the development of the private economy, and further relax market access conditions.Create a fair competitive market environment, tap the development potential and strive to make the private economy bigger and stronger. Continue to take effective measures to activate private capital to invest in high-tech industries, modern service industries and modern agriculture, especially to guide private enterprises to take the road of scientific and technological entrepreneurship and vigorously support private enterprises to develop high-tech industries; Improve the credit guarantee system for small and medium-sized enterprises, help private enterprises solve the financing problem, and encourage private enterprises to go public for financing. (6) Improve the ability of independent innovation, create new advantages for scientific development, and take improving the ability of independent innovation as the priority strategy of economic construction, the core content of improving the comprehensive competitiveness of cities and the central link of transforming the mode of economic growth. First, we should strengthen the dominant position of independent innovation of enterprises, encourage more investment, support research and development, strengthen intellectual property protection, and improve the independent innovation system with Guangzhou characteristics. Second, we should build a high-tech industrial system with international competitiveness, and focus on promoting the construction of high-tech industrial projects such as Guangzhou International Biological Island. (VII) To further improve energy conservation and pollution reduction, we should adhere to the priority of saving and environmental protection, implement strict environmental protection policies, focus on major energy-consuming industries such as petrochemical industry, steel manufacturing, power production and transportation, strictly control high-energy-consuming projects, form a pattern of government guidance, market promotion and participation of the whole society, and continuously improve the capacity for sustainable development.