In 2005，under the correct leadership of Hunan Provincial committee of CPC and the Government, people all over the province implemented the scientific concept of development strategy , spared no efforts in constructing human society, pushed on the progress of agricultural industrialization, industrialization and urbanization, and accurluted the speed of reform and opening. National economy kept steady and healthy development with new headways in adjustment of economy structure and promptment of industry. The quality and efficiency of ecomony was steadily improved with further strengthened vitality. The social affairs developed in an all-round way, and the living standard of people was further improved.

    I. General Outlook
 
    National economy kept steady and healthy development.  In 2005, the Gross Domestic Product of the province was 647.36billion yuan, increased by 11.6 percent over the previous year, the economy entered the period of steady development. Of this total, the value-added of the primary industry was 125.50 billion yuan, up by 5.47percent; the value-added of the secondary industry was 260.46 billion yuan, having a increase of 13.9 percent; and that of tertiary industry was 261.41 billion yuan, having increased 11.8 percent. The per-capita GDP at permanent residents reached 10366 yuan.

    New changes haven brought to the structure of economy. In 2005, the structure of the GDP was 20.6:39.5:39.9. The ration of the value-added of the primary industry accounted for the GDP of the province was 1.1 percentage points lower over the previous year; the secondary industry was 1.4 percentage points higher, of which the industrial sectors was 1.7 percentage points higher. The ration of the value-added of high- tech enterprises accounted for the GDP was 7.3 percent, 0.4 percentage points higher over the previous year. The ration of the value-added of industrial enterprises above designated size accounted for the total value-added of the industrial sector  was 1.7 percentage points higher over the previous year. The value-added of “10 advantaged industries” accounted for 76.5 percent of the industrial enterprises above designated size. The ration of the value-added of industrial enterprises for farm products accounted for industrial enterprises above designated size was 29.7 percent. The urbanization ratio was 37.0 percent, rose by 1.5 percentage points higher over the previous year. The value-added of non-state-owned economy was 323.09 billion yuan, accounted for 49.9 percent of the GDP, rose by 3.3 percentage points higher over the previous year.

    The region economy developed in harmony.  The GDP of “One point and one line” region was 410.83 billion yuan, up by 13.2 percent or 1.6 percentage points higher over the province, accounted for 63.5 percent of the province. The Gross Domestic Product of Changsha and Zhuzhou and Xiangtan was 241.26 billion yuan, up by 124.0 percent  or 2.4 percentage points higher over the province. The GDP of Western Region of Hunan was 73.37 billion yuan, increased by 11.4 percent or 0.6 percentage points higher over the previous year. The growth of economy of country region was accuralted.

    The general prices level decreased . The general level of consumer prices in Hunan of the year was up by 2.3 percent over the previous year, or 2.8 percentage points lower over the previous year. The general retail price of commodities was up by 2.3 percent, or 1.6 percentage points lower over the previous year. The producers' price index for farm products was down by 0.5 percent, in contrast with last year’ increase of 27.3 percent. The price index for agriculture was up by 11.2 percent, or 0.9 percentage points lower over the previous year. The purchasing price index for raw materials, fuels and power was increased by 9.4 percent, or 5 percentage points lower over the previous year. The price index for investment in fixed assets was up by 3.6 percent, or 1.9 percentage points lower over the previous year.

    The situation of the work on employment was strengthened. At the end of year, the employed people was 38.02 million, increased by 1.5 percent. The number of countryside labor worked outside the rural areas was 9.1923million, increased by 6.8 percent. The newly-added employed people in urban areas was 0.58 million. The re-employed people of laid-off workers was 0.342 million. At the end of year,the urban unemployment ratio through unemployment registration was 4.3 percent.

    Main problems that existed in the economic and social development included: the difficulties in keeping the growth of rural household income, the unstable basis for agriculture; the still un-healthly manner in the growth of economy; the increasing pressure on resources and environment, etc.

    II. Agriculture

    The grain yield regained growth, the output of main farm products kept high leavel. In 2005, the total output of grain amounted to 28.57 million tones, up by 1.7 percent. Of which, the output of rice was 24.85 million tons, up by 1.8 percent. The number of slaughtered fattened hogs amounted to 75.01 million heads, up by 6.6 percent. The number of slaughtered beef cattle was 2.06 million heads, up by 11.6 percent. The number of slaughtered sheep and goats was 8.42 million heads, increased by 6.5 percent. The number of slaughtered fowles was 573.19 million feathers, increased by 4.5 percent. The total output of meat for the year reached 6.30 million tons, up by 5.7 percent. The output of cow milk was 0.07 million tons, up by 3.8 percent. The output of poultry and eggs was 0.92 million tons, up by 4.5 percent. The total output of aquatic products was 1.79 million tons, up by 7.2 percent.

Table 1: Output of Major Farm Products, 2005

Item	Output (10,000 tons)	Increase over 2004(%)
Grain	2856.55	1.7
Oil-bearing crops	140.98	1.0
Rapeseed	108.21	1.2
Cotton	18.49	-9.5
Sugarcane	100.40	-9.4
Cured tobacco	20.29	13.0
Vegetables	2391.63	4.3
Fruits	538.93	6.6
meat	629.96	5.7
milk	6.9	3.8
poultry and eggs	92.06	4.5
aquatic products	179.22	7.2

    New changes have been brought to the structure of agriculture and the progress of agricultural industrialization was pushed steadily. In 2005, the sown areas of grain was 5.22 million hectares, up by 2.6 percent. Of which, the sown areas of rice was 4.12 million hectares, up by 3.1 percent.The sown areas of high quality rice covered 53.6 percent of that of the rice; it was 5.4 percentage points higher over the previous year. The sown areas of oil-bearing crops was 898.3 thousand hectares, increased by 2.4 percent. The sown areas of cotton was 133.1 thousand hectares, decreased by 6.4 percent . The sown areas of vegetables was 994.9 thousand hectares, increased by 3.4 percent. The regional dplotment of agriculture was improved, and the coverage of chief enterprises was widened. The ten advantaged farm products industries areas including orange , high quality rice and etc and the major five industry chairs including grain oil cotton , meat milk aquatic products and etc have formed initially. The 166 state and province-level chief enterprises achieved sales revenue 41.3 billion yuan and gained per-tax profits 1.82 billion yuan, increased 15.1 percent and 13.7 percent respectively.

    The construction of rural infrastructure facilities was improved continually and the general production capacity was further prompted. In 2005, 554 thousand water conservancy projects were started working, 5.02 billion yuan was invested, and 0.54 billion earth-stone cubic metres was finished. The areas of controlling soil erosion reached 965 square kilometers. Over 7,000 hectares of land were converted into farmland with effective irrigation system, another 9,000 hectares of land were guaranteed by water-saving irrigation system. The total power of agricultural machinery reached 31.90 million kw, up by 9.1 percent. The usage of chemical fertilizers (100 percent equivalent) reached 2.10 million tons, up by 3.3 percent. In 2005, 1069 drinking water projects were constructed, solving 0.121 million people the difficulty in drinking water. The 133.4 thousnd methane tanks in the countryside were newly build. The finished, newly constructed and transformation highways reaching countryside was 2230 Kilometer; the fulfilled highways reaching villanges was 6762 Kilometer.

    New progress was gained in helping people out of poverty. In 2005, the fund in helping people out of poverty reached 0.77 billion yuan, and 0.2 million people have solved the problem of adequate food and clothing and acrossed the line of low income.

    III. Industry and Construction

    Fast growth was registered in industrial production. In 2005, the total value-added of the industrial sector was 219.99 billion yuan, up by 15.3 percent over the previous year. The value-added of the industrial enterprises above designated size was 153.59 billion yuan, increased by 20.6 percent. Of which, the value-added of “10 advantaged industries” (including equipment manufacturing, steel and colored, and etc) was 117.46 billion yuan, up by 21.0 percent, leading the industria enterprises above designated  size increase 17.7 percentage points. The contribution of “10 typified advantaged industries” to the growth of value-added of the industrial enterprises above designated size reached 78.1 percent.

Table 2: Value-added of Industrial Sector, 2005

 
    Energy production and production of major raw materials speeded up. The total output of primary energy reached 28.94 million tons of standard coal equivalent, it was up by 17.6 percent over the previous year. The electricity generated for the whole year was 63.03 billion kilowatt-hours, up by 4.4 percent. The output of coal was 36.47 million tons, up by 10.1 percent. The value-added of the smelting and pressing of ferrous metals was up 27.6 percent over the previous year; that of the nonferrous metals was up 22.0 percent; that of the raw chemical materials and chemical products and that of non-metal mineral products was up 21.8 and 24.2 percent respectively. Among major raw material products, the output of crude steel stood at 9.75 million tons, up by 22.7 percent; that of rolled steel was 9.61 million tons, up by 19.4 percent.; that of Soda ash increased 47.1 percent; that of sulfuric acid increased 10.1 percent; that of cement increased 9.0 percent.

Table 3: Output of Major Industrial Products, 2005

    Production and marketing linked tightly, the economic efficiency of the enterprises continued improvement. The sales ratio of industrial enterprises above designated size was 99.57 percent. The index of comprehensive economic benefit in the industrial enterprises above designated size was 165.17 percent, or 16.06 percentage points higher over the previous year. The total profits of industrial enterprises above designated size after balancing out between deficits and surpluses was 18.82 billion yuan, up by 22.0 percent; the gained per-tax profits was 54.56 billion yuan, up by 21.4 percent. The newly-added profits of the six industries including tobacco product, nonferrous metals extract and  washing , smelting and pressing of nonferrous metals,  raw chemical materials and chemical products, coal extract and  washing and farm products processing was 3.82 billion yuan, accounted for 68.5 percent of that of industrial enterprises above designated size. The six industries′contribution to the profit of industrial enterprises above designated size was prominent.

Table 4: The total profits of Industrial Sector, 2005

    The construction enterprises developed quickly. The value-added of construction enterprises was 40.47 billion yuan, up by 6.0 percent over the previous year. The profits made by construction enterprises with qualification certificates through general contracts and specialized contracts reached 2.16 billion yuan, up by 25.8 percent. The floor space of building under construction was 135.08 million square meters, up by 17.9 percent. The floor space of building completed 59.30 million square meters, up by 13.1 percent.

    IV. Investment in Fixed Assets

    Investment in fixed assets increased continuously. In 2005, the completed investment in fixed assets reached 254.01 billiion yuan, up by 28.2 percent , or 0.9 percentage points higher over the previous year. Of which, the locality item reached 233.46 billiion yuan, up by 28.2 percent; the nationality item reached 20.55 billion yuan, up by 36.4 percent. Under the investment in urban areas, the construction items were 12094, the completed items were 5836, increased by 28.8 percent and 44.6 percent respectively.
The investment of non-state-owned units increased rapidly. The investment of non-state-owned units was 157.09 billion yuan, up by 38.5 percent，or 24.1 percentage points higher over the investment of state-owned units. The investment of non-state-owned units accounted for 61.8 percent of the completed investment in fixed assets, or 4.5 percentage points higher over the previous year. Of which, the investment of the rest limited liability corporation increased by 73.8 percent, the investment of private-owned nuits increased by 59.5 percent; the investment in real estate, manufacturing industry and capital construction acconnted for 36.3 percent, 32.3 percent and 13.6 percent..

Table 5: Investment in Fixed Assets, 2005