What is the proportion of private economy?

The proportion of private economy refers to the proportion of the total value created by various enterprises legally owned and operated by the people in the total economic output of a country or region. Specifically, it reflects the position and role of private economy in the national economy.

The proportion of private economy is an important reference index for national and regional economic management departments to carry out macro-control and formulate economic policies. The higher the proportion of private economy, usually means that the non-public economy is more developed, and vice versa. Since the reform and opening up in China, the proportion of private economy has increased year by year. According to the statistical data of China in 20021year, the output value of private enterprises accounts for 60.5% of the total retail sales of social consumer goods and 55.8% of the GDP.

Compared with traditional state-owned enterprises, private enterprises usually have the characteristics of strong innovation ability, high flexibility and high efficiency, and are also an important force to create jobs. Therefore, increasing the proportion of private economy is of great significance to promoting economic growth and improving employment level.