China’s Economy Showed Moderate but Stable Growth
National Bureau of Statistics of China2014-07-16 10:00




 

National Bureau of Statistics of China

16 July 2014

 

Since the beginning of 2014, faced with the complicated external and internal conditions, the Central Party Committee and the State Council have taken the initiative of economic development and adopted scientific measures to stabilize economic growth, promote reforms, enhance restructuring and benefit people. The general economic situation has been steady, the structural adjustment achieved stable progress and the transformation and upgrading gained momentum with reform and innovation as the engine and the restructuring as the booster during which the power of the market has been made full use of and more attention paid to targeted regulation.

 

According to the preliminary estimation, the gross domestic product (GDP) of China was 26,904.4 billion yuan in 2014, a year-on-year increase of 7.4 percent at comparable prices. Specifically, the year-on-year growth of the first quarter was 7.4 percent and 7.5 percent for the second quarter. The value added of the primary industry was 1,981.2 billion yuan, up by 3.9 percent; the secondary industry 12,387.1 billion yuan, up by 7.4 percent; and the tertiary industry12,536.1 billion yuan, up by 8.0 percent. The gross domestic product of the second quarter of 2014 went up by 2.0 percent.

 

1. Agricultural Production Showed Good Momentum.

 

The total grain output in 2014 was 136.60 million tons, an increase of 4.75 million tons, up by 3.6 percent. The total output of oil-bearing crops 13.76 million tons, an increase of 340,000 tons, or 2.5 percent. The output of pork, beef, mutton and poultry was 40.03 million tons, a year-on-year increase of 1.7 percent, among which the output of pork was 27.05 million tons, up by 3.0 percent.

 

2. Industrial Production Grew Steadily.

 

The total value added of the industrial enterprises above designated size in the first half year was up by 8.8 percent at comparable prices, 0.1 percentage point faster than the first quarter. An analysis by types of ownership showed that the value added growth of the state-owned and state holding enterprises went up by 5.5 percent; collective enterprises by 3.2 percent; share-holding enterprises by 10.2 percent; and enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan by 7.4 percent. In terms of sectors, the value added of the mining grew by 4.6 percent on a year-on-year base, the manufacturing by 9.9 percent and the electricity, thermal power, gas and the production and supply of water by 4.4 percent. The growth rates in eastern, central and western regions were up by 8.4 percent, 8.8 percent and 10.8 percent respectively. Out of the 464 kinds of industrial products, 346 kinds realized a year-on-year increase. In the first half year, the sales-output ratio of industrial enterprises above designated size reached 97.5 percent, remaining flat as the same period last year. The export delivery value reached 5,614.3 billion yuan, up by 5.3 percent. In June, the total value added of the industrial enterprises above designated size was up by 9.2 percent year-on-year, faster than the previous two months, or up by 0.77 percent month-on-month.

 

In the first five months of this year, the profits made by industrial enterprises above designated size stood at 2,276.4 billion yuan, up by 9.8 percent year-on-year. Of this total, the profit from primary activities was 2,138.8 billion yuan, up by 9.1 percent. The costs for per-hundred-yuan turnover of primary activities of the industrial enterprises above designated size reached 85.9 yuan and the profit rate of the primary activities was 5.47 percent.

 

3. Investment in Fixed Assets Slowed Down at a High Level.

 

In the first six months, the investment in fixed assets (excluding rural households) was 21,277.0 billion yuan, a growth of 17.3 percent (a real growth of 16.3 percent after deducting price factors), 0.3 percentage point slower than the first quarter. Specifically, the investment in the state-owned and state holding enterprises reached 6,566.7 billion yuan, a rise of 14.8 percent; private investment reached 13,860.7 billion yuan, up by 20.1 percent, accounting for 65.1 percent of the total investment. In terms of different areas, the growth in eastern, central and western regions was 16.3 percent, 19.2 percent and 18.6 percent respectively. The investment in the primary industry was 482.0 billion yuan, up by 24.1 percent; the secondary industry 8,918.6 billion yuan, up by 14.3 percent; and the tertiary industry 11,876.4 billion yuan, an increase of 19.5 percent. The funds in place for investment in the first half year were 24,605.1 billion yuan, up by 13.2 percent. Specifically, the state budget went up by 15.5 percent, domestic loans up by 12.9 percent, self-raising funds up by 16.7 percent, foreign investment down by 8.3 percent. The total investment in newly-started projects in the first six months was 19,684.3 billion yuan, an increase of 13.6 percent. In June, investment in fixed assets (excluding rural households) grew by 1.45 percent month-on-month.

 

The total investment in real estate development in the first six months was 4,201.9 billion yuan, a nominal annual growth of 14.1 percent (a real growth of 13.1 percent after deducting price factors), 2.7 percentage points slower than the first quarter. In particular, the investment in residential buildings went up by 13.7 percent. The floor space started in the first six months was 801.26 million square meters, down by 16.4 percent. Specifically, the floor space of residential buildings went down by 19.8 percent. The floor space of commercial buildings sold was 483.65 million square meters, down by 6.0 percent. Specifically, the floor space of residential buildings sold was down by 7.8 percent. The total sales of commercial buildings were 3,113.3 billion yuan, down by 6.7 percent. Specifically, the sales of residential buildings were down by 9.2 percent. The land space purchased for real estate development was 148.07 million square meters, down by 5.8 percent. By the end of June, the floor space of commercial buildings for sale was 544.28 million square meters, up by 24.5 percent. The funds in place for real estate development enterprises in the first half year reached 5,891.3 billion yuan, up by 3.0 percent.

 

4. Sales on Domestic Markets Enjoyed a Steady Growth.

 

In the first half year, the total retail sales of consumer goods reached 12,419.9 billion yuan, a nominal annual rise of 12.1 percent (a real growth of 10.8 percent after deducting price factors), 0.1 percentage point faster than that in the first quarter. Specifically, the retail sales of the enterprises (units) above designated size stood at 6,210.2 billion yuan, up by 9.8 percent. Analyzed by different areas, the retail sales in urban areas reached 10,725.3 billion yuan, up by 12.0 percent, and the retail sales in rural areas stood at 1,694.6 billion yuan, up by 13.2 percent. Grouped by consumption patterns, the income of catering industry was 1,298.9 billion yuan, up by 10.1 percent; and the retail sales of goods were 11,121.0 billion yuan, up by 12.4 percent. In particular, the retail sales of the enterprises (units) above designated size reached 5,832.9 billion yuan, an annual growth of 10.2 percent. In June, the total retail sales of consumer goods rose by 12.4 percent year-on-year (a real growth of 10.7 percent after deducting price factors), or 0.96 percent growth month-on-month.

 

In the first half year, the online retail sales reached 1,137.5 billion yuan, a year-on-year growth of 48.3 percent and the online retail sales of the enterprises (units) above designated size stood at 181.9 billion yuan, up by 56.3 percent.

 

5. Imports and Exports Reversed to Positive Growth.

 

The total value of imports and exports in the first half year was 12,391.9 billion yuan or 2,020.9 billion US dollars, an increase of 1.2 percent (that in the first quarter was down by 1.0 percent year-on-year). The total value of exports was 6,511.3 billion yuan, or 1,061.9 billion dollars, up by 0.9 percent; the total value of imports was 5,880.7 billion yuan, or 959.0 billion dollars, an increase of 1.5 percent. The trade balance was 630.6 billion yuan or 102.9 billion dollars. In June, the total value of imports and exports was 2,108.6 billion yuan or 342.0 billion US dollars, up by 6.4 percent. The total value of exports was 1,151.3 billion yuan or 186.8 billion US dollars, up by 7.2 percent; and that of imports was 957.3 billion yuan or 155.2 billion US dollars, up by 5.5 percent.

 

6. The Growth of Consumer Price Remained Stable.

 

In the first six months, the consumer price went up by 2.3 percent year-on-year, maintaining the same level as that in the first quarter. Specifically, the price went up by 2.3 percent in urban areas and 2.0 percent in rural areas. Grouped by commodity categories, prices for food rose by 3.4 percent; tobacco, liquor and articles decreased by 0.6 percent; clothing up by 2.3 percent; household facilities, articles and maintenance services up by 1.3 percent; health care and personal articles grew by 1.2 percent; transportation and communication up by 0.1 percent; recreation, education, culture articles and services grew by 2.3 percent and housing went up by 2.5 percent. In terms of food prices, grain grew up by 2.9 percent, oil or fat down by 5.3 percent, pork down by 5.1 percent, fresh vegetables up by 1.0 percent. In June, the consumer prices went up by 2.3 percent year-on-year, or 0.1 percent down month-on-month. In the first half year, the producer prices for industrial products went down by 1.8 percent year on year, while the price in June dropped by 1.1 percent year-on-year and 0.2 percent month-on-month. The purchasing price for industrial producers was down by 2.0 percent year-on-year. In June, the price was down by 1.5 percent year-on-year and 0.1 percent month-on-month.

 

7. Residents’ Income Continued to Increase.

 

In the first half year, the per capita cash income of rural residents was 5,396 yuan, up by 12.0 percent nominally, or 9.8 percent in real terms. The per capita disposable income of urban households was 14,959 yuan, a nominal growth of 9.6 percent, or a real growth of 7.1 percent after deducting price factors. Based on the integrated household survey, in the first half year of 2014, the national per capita disposable income was 10,025 yuan, a nominal growth of 10.8 percent or a real increase of 8.3 percent. The median of the national disposal income was 8,780 yuan, a nominal increase of 13.7 percent. By the end of June, the number of rural migrant workers was 174.18 million, which was 3.07 million more than the same period last year, or up by 1.8 percent. The monthly income of migrant workers was 2,733 yuan, up by 10.3 percent.

 

8. Structural Adjustment Achieved Stable Progress.

 

The industrial structure continued to be optimized. In the first half year, the value of the tertiary industry accounted for 46.6 percent of GDP, 1.3 percentage points higher than the same period last year, 0.6 percentage point higher than that of the secondary industry. The structure of domestic demand was further improved. In the first half year, the final consumption expenditure accounted for 52.4 percent of GDP, 0.2 percent point higher than the same period last year. The income gap between urban and rural households was further narrowed. In the first half year, the real growth of the per capita cash income of rural households was 2.7 percentage points faster than the per capita disposable income of urban households. The per capita income of urban households was 2.77 times of the rural households, 0.06 less than that of the same period last year. Energy conservation and consumption reduction continued to make new achievements. In the first half year, the energy consumption per 10,000 yuan of GDP decreased by 4.2 percent.

 

9. Money Supply Maintained a Steady Growth.

 

By the end of June, the balance of broad money (M2) was 120.96 trillion yuan, a year-on-year growth of 14.7 percent; the balance of narrow money (M1) was 34.15 trillion yuan, up by 8.9 percent; and the balance of cash in circulation (M0) was 5.70 trillion yuan, a rise of 5.3 percent. At the end of June, the amount of outstanding loans was 77.63 trillion yuan, while the amount of outstanding deposits was 113.61 trillion yuan. In the first half year, the newly increased loans reached 5.74 trillion yuan, an increase of 659.0 billion yuan; the newly increased deposits were 9.23 trillion yuan, or 135.4 billion yuan more than last year. The social financing reached 10.57 trillion yuan, an increase of 414.6 billion yuan.

 

Generally speaking, China’s economy showed good momentum of stable and moderate growth in the first half year. However, we should keep in mind that the domestic and international economic environment is still complicated and the national economy still faces many challenges. In the next stage, we should raise our spirits, focus on the implementation and abide by the decisions of the Central Party Committee and the State Council. We should make unwavering efforts to deepen reform, promote innovation, adjust economic structure and transform development patterns. We should also strive to consolidate the momentum of steadily progressing economic development and endeavor to promote a sustainable and sound development of the national economy.

 

Notes:

 

1. The growth rate of gross domestic product, value added of industrial enterprises above designated size and its sub-items are real growth by using comparable prices. The growth rates of other indicators are nominal growth by using current prices unless otherwise specified.

 

2. According to the auto-revision function of the seasonal adjustment model, GDP in each quarter and the month-on-month changes of the value added of industrial enterprises above designated size, investment in fixed assets (excluding rural households), and total retail sales of consumer goods have been revised. The revised figures and figures for June as well as GDP of the first half year of 2014 are as follows:

 

The quarter-on-quarter growth of GDP in 2013 and the first half year of 2014 were 1.6 percent, 1.8 percent, 2.3 percent, 1.7 percent, 1.5 percent and 2.0 percent respectively.

 

Month-on-Month Changes

 

Value Added of Industrial Enterprises above Designated Size

(%)

Investment in Fixed  Assets (Excluding Rural Households)

(%)

Total Retail Sales of Consumer Goods

(%)

 

 

 

 

2013

June

0.62

1.28

1.09

July

0.89

1.55

1.07

August

0.88

1.66

0.92

September

0.65

1.26

1.05

October

0.77

1.10

0.98

November

0.70

1.39

1.01

December

0.68

1.33

1.01

2014

January

0.62

1.40

0.91

February

0.63

1.25

0.52

March

0.83

1.27

1.40

April

0.71

1.23

0.82

May

0.72

1.37

1.15

June

0.77

1.45

0.96

 

 

 

 

 

3. From 2012, the NBS implemented the new Industrial Classification for National Economic Activities (GB/T4754-2011). For more detailed information, please refer to the website of the National Bureau of Statistics of China.

 

4. The eastern areas include 11 provinces and municipalities: Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong and Hainan; central areas cover 8 provinces: Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei and Hunan; western area include 12 provinces, autonomous regions and municipality: Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang.

 

5. Industrial enterprises above designated size are industrial enterprises with annual revenue from primary activities over 20 million yuan.

 

6. Units above designated size in total retail sales of consumer goods include wholesale enterprises, retail enterprises and lodging and catering enterprises with annual revenue from principle business over 20 million yuan, 5 million yuan and 2 million yuan respectively.

 

Online retail sales refer to the retail sales of goods and services realized through internet trading platforms (including self-built websites and third-party platforms) by enterprises (units, self-employed and individuals). Goods and services include physical goods, virtual goods and services. The online retail sales of the units above designated size refer to the retail sales of consumer goods conducted through Internet trading platforms (including self-built websites and third-party platforms) by units above designated sizes.

 

There are great differences between the online retails sales and the total retail sales of consumer goods in coverage and definition. The sales of virtual goods, services and a few other goods for production operation and resale, included in online retail sales are not covered by the total retail sales of consumer goods. The relation of the two cannot be described as full inclusion.

 

7. In the fourth quarter of 2012, the National Bureau of Statistics (NBS) of China conducted the reform of integrated survey of urban and rural households, unifying the names, classification and statistical standards of urban and rural households and selecting 160 thousand urban and rural households across the country to conduct direct surveys. On its basis, per capita disposable income of national residents was calculated according to the new definitions which make urban and rural households comparable. Meanwhile, per capita net income of rural households and per capita disposable income of urban households were also surveyed and calculated according to the old definitions to make the data comparable with previous years.

 

8. The median of per capita disposable income of urban and rural households refers to the per capita disposable income of households which lies in the middle of all surveyed households ranked from low to high on the basis of per capital disposable income level.

 

9. Data of imports and exports are from the General Administration of Customs; data of money supply and deposits and loans and social financing are from the People’s Bank of China.

 

10. Due to the rounding-off reasons, the subentries may not add up to the aggregate totals.

 

 

In case of any differences between English translation and the original Chinese text, the Chinese edition shall prevail.

 

 

 

 

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