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Economic growth in the Yangtze River Delta has slowed for the first time for decades. And investments are also cooling down.
Total investment in the region during the first quarter this year accounted for 42 percent of China's GDP. That's one percent lower than the same period last year.
A report released by the National Bureau of Statistics on Tuesday, says that the economy in the Yangtze River Delta saw some moderate adjustment in the first quarter. As China's heated economy cools down, so has the pressure on power supply. Power generation is the main industry in the Yangtze River Delta region.
The report also points out that over-heated investments in the region have been effectively curbed. Investment growth rate for the first quarter was down nearly 44 percent from the same period last year, with the total amount of fixed asset investment at some 300 billion yuan. Only seven cities in the region saw an investment growth over 20 percent, while another three witnessed a decline in growth rate.
While investment growth in fixed assets slowed down, consumer spending maintained strong momentum. During the same period, total retail revenue from consumer goods rose to nearly 240 billion yuan, an increase of 15 percent year-on-year.
The gap between investments and consumer demand growth has been significantly reduced, from 46 percent last year to less than one percent.
(Xinhua News Agency May 11, 2005)
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