Chinese farmers' income growth is expected to slow in the second
half, due to continued falling prices for grain and livestock, and
the steadily rising prices of farming materials.
Falling grain prices and higher production costs would reduce
average net income by 30 to 50 yuan (US$6.3), said a report from
the National Commission of Development and Reform (NDRC) on
Monday.
Meanwhile, without new favorable policies, political factors are
expected to contribute less to the income growth of farmers, said
the report.
The income gap between China's rural and urban areas is still
widening, according to figures released by the National Bureau of
Statistics.
During the first half, the average cash income of farmers grew
11.9 percent from the same period last year to 1,797 yuan, 0.6
percentage points lower than the same period last year; while the
average disposable income of urban citizens grew 10.2 percent to
5,997 yuan, 0.7 percentage points higher.
The NDRC report also predicts housing prices will continue to
rise. As a result, income growth of urban residents will be
affected and low-income families are set to suffer more financial
pressures.
(Xinhua News Agency August 1, 2006)