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Shanxi reports negative GDP growth in H1

(chinadaily.com.cn)
Updated: 2009-07-29 13:45

Shanxi province said its gross domestic product (GDP) fell 4.4 percent year-on-year to 310.60 billion yuan ($45.47 billion) in the first half of this year, making it the only province to experience a GDP drop among the regions that have released their economic performance so far, according to today’s National Business Daily.

Related readings:  Supervision online: Shanxi pulls up 5 counties  Shanxi to slash half of its coalmines  Shanxi province gets new governor  China's GDP to grow 9% in Q3: Economist  China GDP grows 7.1% in first half '09

Analysts say the economic decline was partially a result of a government effort to crack down on small coalmines with lax safety standards, which reduced the coal supply to other industries and in turn hurt Shanxi’s economy.

To compensate, Shanxi has made an effort to boost coal output since May of this year.

As many as 633 coal mines have resumed production in the first half of this year, about one quarter of total coalmines in the province, according to Shanxi Administration of Coal Mine Safety.

As a result, the province produced 49 million tons of coal in May, up nearly 7 million tons from April. Its June coal production was even more robust, rising about 18 percent to roughly 58 million tons.