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Disposable Personal Income Lagged Behind GDP Growth

On October 31, 2012, Securities Times published a report on the National Bureau of Statistics of China’s recently released statistics on China’s revenues. According to the statistics, during the 10 years from 2002 to 2011, the personal disposable income of urban residents increased 1.8 times. In the same period, national fiscal revenue increased 4.5 times and domestic GDP went up 3.6 times. “This wide gap shows that during the past 10 years, most of the newly created wealth was distributed outside the reach of China’s residents. Considering the multiple of 4.5 times in the increase in fiscal revenue, it can be said that the government received a much larger share of the benefits than ordinary residents. In fact, on average, urban residents’ income increased by 10 percent per annum, while fiscal revenue went up by as much as 20 percent per annum.”

Source: Securities Times, October 31, 2012