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At the beginning of the state-owned economy (1953–57, the first five-year plan period), there was strong momentum in development. The annual growth rate of GDP was 9.2 per cent and the growth rate of residents’ per capita consumption was 4.5 per cent. However, in this period, the centrally planned economy was not fully formed. Private industry and commerce coexisted with the state-owned economy before 1956 and the free market had not been banned.

China’s macroeconomics in the 40 years of reform