Overall Economic Development Kept Performing in a Proper Range in the First Three Quarters of 2014

National Bureau of Statistics of China

21 October 2014

In the first three quarters of 2014, faced with the complicated conditions at home and abroad, the Central Party Committee and the State Council grasped the general trend of development and committed to the tone of moving forward while maintaining stability as well as promoting reform and innovation, adopted scientific measures to stabilize economic growth, promote reforms, enhance restructuring, benefit people and control risks, and paid more attention to targeted regulation on the basis of the ranged approach. The general economic performance was moving by steady steps in the new normal with progress made and quality improved.

According to the preliminary estimation, the gross domestic product (GDP) of China in the first three quarters of this year was 41,990.8 billion yuan, a year-on-year increase of 7.4 percent calculated at comparable prices. Specifically, the year-on-year growth was 7.4 percent for the first quarter, 7.5 percent for the second quarter and 7.3 percent for the third quarter. The value added of the primary industry was 3,799.6 billion yuan, up by 4.2 percent; that of the secondary industry was 18,578.7 billion yuan, up by 7.4 percent; and that of the tertiary industry was 19,612.5 billion yuan, up by 7.9 percent. The gross domestic product of the third quarter of 2014 went up by 1.9 percent on a quarterly basis.

1. Agricultural Production Showed Good Momentum.

The total output of summer grain was 136.60 million tons, an increase of 4.75 million tons, up by 3.6 percent. The output of early rice was 34.01 million tons, a decrease of 125 thousand tons, down by 0.4 percent. The autumn grain production is expected to get a good harvest again. In the first three quarters of 2014, the total output of pork, beef, mutton and poultry reached 59.75 million tons, a year-on-year growth of 2.0 percent. The output of pork reached 39.72 million tons, up by 3.3 percent.

2. The Growth of Industrial Production Remained Stable.

The total value added of the industrial enterprises above designated size in the first three quarters was up by 8.5 percent at comparable prices, or 0.3 percentage point lower than that in the first half of the year. An analysis on different types of enterprises showed that the value added growth of the state-owned and state holding enterprises went up by 5.2 percent; collective enterprises 2.6 percent; share-holding enterprises 9.9 percent; and 6.7 percent for enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan provinces. In terms of sectors, the value added of the mining grew by 4.8 percent on a year-on-year base, the manufacturing by 9.6 percent and the production and supply of electricity, thermal power, gas and water by 3.1 percent. The growth rates in eastern, central and western regions were up by 8.0 percent, 8.5 percent and 10.6 percent respectively. Out of the 464 kinds of industrial products, 346 kinds realized year-on-year increase in output. In the first three quarters, the sales-output ratio of industrial enterprises above designated size was 97.7 percent, or 0.2 percentage point higher than that in the first half of the year. The export delivery value reached 8,748.3 billion yuan, up by 6.4 percent. In September, the total value added of the industrial enterprises above designated size was up by 8.0 percent year-on-year, or 0.91 percent month-on-month.

In the first eight months of this year, the profits made by industrial enterprises above designated size stood at 3,833.0 billion yuan, up by 10.0 percent year-on-year. Of this total, the profit from primary activities was 3,587.0 billion yuan, up by 9.6 percent. The costs for per-hundred-yuan turnover of primary activities of the industrial enterprises above designated size reached 86.06 yuan and the profit rate of the primary activities was 5.52 percent.

3. Investment in Fixed Assets Slowed Down.

In the first three quarters, the investment in fixed assets (excluding rural households) was 35,778.7 billion yuan, a growth of 16.1 percent (a real growth of 15.3 percent after deducting price factors), or 1.2 percentage points lower than that in the first half of the year. Specifically, the investment in the state-owned and state holding enterprises reached 11,236.9 billion yuan, a rise of 14.1 percent; private investment reached 23,150.9 billion yuan, up by 18.3 percent, accounting for 64.7 percent of the total investment. In terms of different areas, the growth in eastern, central and western regions was 14.9 percent, 17.8 percent and 17.9 percent respectively. The investment in the primary industry was 864.2 billion yuan, up by 27.7 percent; the secondary industry 15,018.0 billion yuan, up by 13.7 percent; and the tertiary industry 19,896.5 billion yuan, an increase of 17.4 percent. The funds in place for investment in the first three quarters were 39,114.1 billion yuan, up by 12.4 percent. Specifically, the state budget went up by 14.1 percent, domestic loans up by 11.2 percent, self-raising funds up by 16.1 percent, and foreign investment down by 7.0 percent. The total planned investment in newly-started projects in the first three quarters was 30,372.9 billion yuan, an increase of 14.4 percent. In September, investment in fixed assets (excluding rural households) grew by 0.77 percent month-on-month.

The total investment in real estate development in the first three quarters was 6,875.1 billion yuan, a nominal annual growth of 12.5 percent (a real growth of 11.7 percent after deducting price factors), or 1.6 percentage points lower than that in the first half of the year. In particular, the investment in residential buildings went up by 11.3 percent. The floor space started in the first three quarters was 1,314.11 million square meters, down by 9.3 percent. Specifically, the floor space of residential buildings went down by 13.5 percent. The floor space of commercial buildings sold was 771.32 million square meters, down by 8.6 percent. Specifically, the floor space of residential buildings sold was down by 10.3 percent. The total sales of commercial buildings were 4,922.7 billion yuan, down by 8.9 percent. Specifically, the sales of residential buildings were down by 10.8 percent. The land space purchased for real estate development was 240.14 million square meters, down by 4.6 percent. By the end of September, the floor space of commercial buildings for sale was 571.48 million square meters, up by 28.0 percent. The funds in place for real estate development enterprises in the first three quarters reached 8,986.9 billion yuan, up by 2.3 percent.

4. Sales on Domestic Markets Enjoyed a Steady Growth.

In the first three quarters, the total retail sales of consumer goods reached 18,915.1 billion yuan, a nominal annual rise of 12.0 percent (a real growth of 10.8 percent after deducting price factors), or 0.1 percentage point lower than that in the first half of the year. Specifically, the retail sales of the enterprises (units) above designated size stood at 9,423.3 billion yuan, up by 9.5 percent. Analyzed by different areas, the retail sales in urban areas reached 16,313.2 billion yuan, up by 11.9 percent, and the retail sales in rural areas stood at 2,601.9 billion yuan, up by 13.0 percent. Grouped by consumption patterns, the income of catering industry was 1,993.4 billion yuan, up by 9.7 percent; and the retail sales of goods were 16,921.7 billion yuan, up by 12.3 percent. In particular, the retail sales of the enterprises (units) above designated size reached 8,841.4 billion yuan, an annual growth of 10.1 percent. In September, the total retail sales of consumer goods rose 11.6 percent year-on-year (a real growth of 10.8 percent after deducting price factors), or 0.85 percent month-on-month.

In the first three quarters, the online retail sales reached 1,823.8 billion yuan, a year-on-year growth of 49.9 percent, and the online retail sales of the enterprises (units) above designated size stood at 288.8 billion yuan, up by 54.8 percent.

5. The Growth Rates of Imports and Exports Picked up.

The total value of imports and exports in the first three quarters was 19,422.3 billion yuan or 3,162.6 billion US dollars, an increase of 3.3 percent, or 2.1 percentage points higher than that in the first half of the year. The total value of exports was 10,422.4 billion yuan, or 1,697.1 billion US dollars, up by 5.1 percent; the total value of imports was 8,999.8 billion yuan, or 1,465.5 billion US dollars, an increase of 1.3 percent. The trade surplus was 1,422.6 billion yuan or 231.6 billion US dollars. In September, the total value of imports and exports was 2,441.7 billion yuan or 396.4 billion US dollars, up by 11.3 percent. The total value of exports was 1,315.9 billion yuan or 213.7 billion US dollars, up by 15.3 percent; and that of imports was 1,125.8 billion yuan or 182.7 billion US dollars, up by 7.0 percent.

6. The Growth of Consumer Price was Generally Stable.

In the first three quarters, the consumer price went up by 2.1 percent year-on-year, or 0.2 percentage point lower than that in the first half of the year. Specifically, the price went up by 2.2 percent in urban areas and 1.9 percent in rural areas. Grouped by commodity categories, prices for food rose by 3.3 percent; tobacco, liquor and articles down by 0.6 percent; clothing up by 2.4 percent; household facilities, articles and maintenance services up by 1.2 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 2.2 percent and housing went up by 2.3 percent. In terms of food prices, grain grew up by 3.1 percent, oil or fat down by 5.0 percent, pork down by 4.5 percent and fresh vegetables down by 1.3 percent. In September, the consumer prices went up by 1.6 percent year-on-year, or 0.5 percent month-on-month. In the first three quarters, the producer prices for industrial products went down by 1.6 percent year-on-year, while the price in September dropped by 1.8 percent year-on-year and 0.4 percent month-on-month. The purchasing price for industrial producers was down by 1.8 percent year-on-year. In September, the price was down by 1.9 percent year-on-year and 0.4 percent month-on-month.

7. Residents’ Income Kept Steady Growth.

In the first three quarters, the per capita cash income of rural households was 8,527 yuan, up by 11.8 percent nominally, or 9.7 percent in real terms. The per capita disposable income of urban households was 22,044 yuan, a nominal growth of 9.3 percent, or a real growth of 6.9 percent after deducting price factors. Based on the integrated household survey, in the first three quarters of 2014, the national per capita disposable income was 14,986 yuan, a nominal growth of 10.5 percent or a real increase of 8.2 percent. The median of the national per capita disposable income was 13,120 yuan, a nominal increase of 12.1 percent. By the end of September, the number of rural migrant workers was 175.61 million, which was 1.69 million more than that in the same period last year, or up by 1.0 percent. The average monthly income of migrant workers was 2,797 yuan, up by 10.0 percent.

8. Structural Adjustment Achieved Considerable Progress.

The industrial structure was more optimized. In the first three quarters, the value added of the tertiary industry accounted for 46.7 percent of the GDP, which was 1.2 percentage points higher than that in the same period last year, or 2.5 percentage points higher than that of the secondary industry. The structure of domestic demand continued to be improved. In the first three quarters, the final consumption expenditure accounted for 48.5 percent of the GDP growth, which was 2.7 percentage points higher than that in the same period last year. The income gap between urban and rural households was further narrowed. In the first three quarters, the real growth of the per capita cash income of rural households was 2.8 percentage points higher than the per capita disposable income of urban households. The per capita income of urban households was 2.59 times that of the rural households, 0.05 less than that of the same period last year. Energy conservation and consumption reduction continued to make new achievements. In the first three quarters, the energy consumption per unit of GDP went down by 4.6 percent.

9. Money Supply Maintained a Steady Growth.

By the end of September, the balance of broad money (M2) was 120.21 trillion yuan, a year-on-year growth of 12.9 percent; the balance of narrow money (M1) was 32.72 trillion yuan, up by 4.8 percent; and the balance of cash in circulation (M0) was 5.88 trillion yuan, a rise of 4.2 percent. At the end of September, the amount of outstanding loans was 79.58 trillion yuan, while the amount of outstanding deposits was 112.66 trillion yuan. In the first three quarters, the newly increased loans reached 7.68 trillion yuan, an increase of 404.5 billion yuan; the newly increased deposits were 8.27 trillion yuan, a decrease of 2.99 trillion yuan year-on-year. The social financing reached 12.84 trillion yuan, a decrease of 1.12 trillion yuan year-on-year.

Generally speaking, China’s economy showed a good momentum of stable growth in the first three quarters of the year with progress made and quality improved. However, we should keep in mind that the internal and external environment is still complicated and the economic development still faces many challenges. In the next stage, in accordance with the decisions and arrangements made by the Central Party Committee and the State Council, we should reasonably understand and actively adapt to the new normal, focus on reform and innovation, promote transformation and upgrading, and improve people’s livelihood. We should maintain the continuity and stability of macro policies and make anticipatory adjustments and fine tuning in an appropriate and timely manner, so as to achieve a stable 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 September as well as GDP of the third quarter of 2014 are as follows:

The quarter-on-quarter growth of GDP in 2013 and the first three quarters of 2014 was 1.6 percent, 1.8 percent, 2.3 percent, 1.7 percent, 1.5 percent, 2.0 percent and 1.9 percent respectively.

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 capita disposable income level.

9. Data of imports and exports are from the General Administration of Customs; data of money supply, 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.