2. Status of agriculture in national economy

China is a large agricultural country with huge population. Obviously, agriculture is of great importance to the national economy. In 1978, agriculture accounted for 28.1 percent of the Gross Domestic Production (GDP) and absorbed 70.5 percent of the national total working population. By the year 2006, agriculture has still contributed 11.8 percent to the GDP and absorbed some 42.6 percent of the total working population. Farmers and rural areas have played an increasingly important role in promoting growth of the national economy. It is estimated that every 100 billion yuan of final consumption made by the Chinese farmers would generate more than 230 billion yuan of consumer demand in national economy, leading to over 120 billion yuan of expanded intermediate input from the industrial sector. From every single percentage point of growth in farmers’ income, the GNP would increase by 0.5 percentage point. Now the multiple functions of agriculture are becoming more and more prominent, playing an increasingly important role in ensuring effective supply of farm produce and its quality and safety, stabilizing prices, protecting eco-environment, and realizing sustainable development. In 2006, the total value of agricultural imports and exports accounted for 3.6 percent of the national total value of commodity imports and exports. The total value of agricultural imports and exports contributed 4.1 percent and 3.2 percent to the national total, respectively.

Share of Agriculture in National Economy