According to the DRC's Research Report No 143, during the first five months of 2013, the economy in Northwest China developed rapidly. Though the growth rate decreased compared to the previous year, a number of indicators and regions has shown differentiation.

There are four outstanding problems facing current economic operations – lack of motivation for internal self-growth, local revenue and expenditure pressures, a single industrial structure in some regions, and an obvious deviation between industrial electricity consumption and industrial growth.

Regarding second-half and long-term economic performance, downward pressure on economic growth still exists. The western region faces two tasks: economic development and industrial transformation.

To ensure the basic stability of macroeconomic policies, the government should enhance region-specific regulatory policies, adjust excess capacity, optimize the industrial layout, and combine domestic demand and regional development to promote “steady growth, structural adjustments, domestic demand and people’s livelihoods.”

Wu Zhenyu, Long Haibo

Analysis on Economic Operations in Northwest China, Research Team, DRC