Strong Measures Adopted to Counter the Impacts of Unexpected Factors and National Economy Registered a Stable Recovery
National Bureau of Statistics of China2022-07-15 10:00




National Bureau of Statistics of China

15 July 2022

 

This year, facing increasingly complicated and challenging international environment, as well as multiple and sporadic local outbreak of COVID-19 pandemic, the economic development was extremely unusual with significantly increased adverse impacts, and the economy in the second quarter was under noticeable downward pressure with serious impacts from unexpected factors. Faced with extreme complexities and difficulties, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments deeply implemented the decisions and arrangements made by the CPC Central Committee and the State Council, responded to COVID-19 and pursued economic and social development in a well-coordinated manner, stepped up macro policy adjustments, and fully implemented a package of pro-stability policies and measures. As a result, the resurgence of the pandemic was effectively contained, the national economy registered a stable recovery, production and demands saw improving margins, market prices were generally stable, people’s livelihood was protected sufficiently with robust steps, the momentum of high-quality development was sustained and the overall social stability was maintained.

 

1. National Economy Realized Positive Growth in the Second Quarter Despite Downward Pressure.

 

Major economic indicators in April plunged. Faced with new growing downward pressure, the CPC Central Committee and the State Council made scientific decisions and took timely measures, implemented the policy measures of the Central Economic Work Conference and the Government Work Report early on instead of taking a deluge of strong stimulus policies, rolled out a package of pro-stability policy measures according to the general guidelines and policy orientation, held national teleconference to make arrangements on maintaining stable macroeconomic performance, and the policies have soon taken effect. The decline of major economic indicators narrowed in May, the economy in June registered a stable recovery, and the economy in the second quarter achieved positive growth. According to the preliminary estimates, the gross domestic product (GDP) of China in the first half year was 56,264.2 billion yuan, up by 2.5 percent year on year at constant prices. By industry, the value added of the primary industry was 2,913.7 billion yuan, up by 5.0 percent year on year; the secondary industry 22,863.6 billion yuan, up by 3.2 percent; and the tertiary industry 30,486.8 billion yuan, up by 1.8 percent. Specifically, the GDP for the second quarter was 29,246.4 billion yuan, up by 0.4 percent year on year. By industry, in the second quarter, the value added of the primary industry was 1,818.3 billion yuan, up by 4.4 percent year on year; the secondary industry 12,245.0 billion yuan, up by 0.9 percent; and the tertiary industry 15,183.1 billion yuan, down by 0.4 percent.

 

2. Summer Grain Witnessed Another Harvest and Animal Husbandry Grew Steadily.

 

In the first half year, the value added of agriculture (crop farming) went up by 4.5 percent year on year. The overall output of summer grain was 147.39 million tons, 1.434 million tons higher than that of last year, an increase of 1.0 percent. The structure of crop farming continued to optimize, as sown area for cash crops like rapeseeds increased. In the first half year, the output of pork, beef, mutton and poultry was 45.19 million tons, up by 5.3 percent year on year. Specifically, the output of pork, beef and mutton was up by 8.2 percent, 3.8 percent and 0.7 percent respectively, and poultry down by 0.8 percent; that of milk went up by 8.4 percent and eggs up by 3.5 percent. In the second quarter, the output of pork, beef, mutton and poultry went up by 1.6 percent year on year, of which pork was up by 2.4 percent. By the end of the second quarter, the number of pigs registered in stock was 430.57 million, down by 1.9 percent year on year, among which 42.77 million were breeding sows; and 365.87 million pigs were slaughtered, up by 8.4 percent.

 

3. Industrial Production Was Steadily Recovered and High-tech Manufacturing Enjoyed Fast Development.

 

In the first half year, the total value added of the industrial enterprises above the designated size grew by 3.4 percent year on year. In terms of sectors, the value added of mining increased by 9.5 percent year on year; that of manufacturing increased by 2.8 percent; and the production and supply of electricity, thermal power, gas and water increased by 3.9 percent. The value added of high-tech manufacturing went up by 9.6 percent year on year, 6.2 percentage points higher than that of the industrial enterprises above the designated size. In terms of ownership, the value added of the state holding enterprises grew by 2.7 percent year on year, that of the share-holding enterprises up by 4.8 percent, that of the enterprises funded by foreign investors and investors from Hong Kong, Macao and Taiwan down by 2.1 percent and that of private enterprises up by 4.0 percent. In terms of products, the production of new-energy automobiles, solar cells and mobile communication base stations grew by 111.2 percent, 31.8 percent and 19.8 percent year on year respectively.

 

In the second quarter, the total value added of the industrial enterprises above the designated size went up by 0.7 percent year on year. Specifically, that in April went down by 2.9 percent year on year; that in May shifted from negative to positive and up by 0.7 percent; that in June was an increase of 3.9 percent, 3.2 percentage points higher than that of the previous month; or up by 0.84 percent month on month. In June, the Manufacturing Purchasing Managers’ Index stood at 50.2 percent, 0.6 percentage point higher than that of the previous month; the Production and Operation Expectation Index was 55.2 percent, 1.3 percentage points higher. In the first five months, the total profits made by industrial enterprises above the designated size was 3,441.0 billion yuan, up by 1.0 percent year on year.

 

4. Service Sector Recovered Gradually and Modern Service Industries Witnessed Good Momentum of Growth.

 

In the first half year, the value added of services went up by 1.8 percent year on year. Of this total, that of information transmission, software and information technology services and that of financial intermediation grew by 9.2 percent and 5.5 percent respectively. In the second quarter, the value added of services was down by 0.4 percent year on year. The Index of Services Production in April was down by 6.1 percent year on year; the decline in May narrowed to 5.1 percent and that in June shifted from decline to an increase of 1.3 percent. In the first five months, business revenue of service enterprises above the designated size went up by 4.6 percent year on year, 0.4 percentage point higher than that of the first four months. In June, the Business Activity Index for services was 54.3 percent, 7.2 percentage points higher than that of the previous month. Specifically, the Business Activity Index for retail sales, railway transportation, road transportation, air transportation, postal services, monetary and financial services and capital market services stayed within the expansion rage of 55.0 percent and above. In terms of market expectation, the Business Activity Expectation Index for services was 61.0 percent, 5.8 percentage points higher than that of the previous month.

 

5. Market Sales Improved and Retail Sales of Goods for Basic Living Grew Fast.

 

In the first half year, the total retail sales of consumer goods reached 21,043.2 billion yuan, down by 0.7 percent year on year. Analyzed by different areas, the retail sales in urban areas reached 18,270.6 billion yuan, down by 0.8 percent, and the retail sales in rural areas stood at 2,772.6 billion yuan, down by 0.3 percent. Grouped by consumption patterns, the retail sales of goods was 19,039.2 billion yuan, up by 0.1 percent; the income of catering was 2,004.0 billion yuan, down by 7.7 percent. The consumption of goods for basic living grew steadily. The retail sales of grain, oil and food and that of beverage by enterprises above the designated size went up by 9.9 percent and 8.2 percent respectively. The online retail sales totaled 6,300.7 billion yuan, up by 3.1 percent. Specifically, the online retail sales of physical goods were 5,449.3 billion yuan, up by 5.6 percent, accounting for 25.9 percent of the total retail sales of consumer goods. In the second quarter, the total retail sales of consumer goods went down by 4.6 percent year on year. Specifically, that in April was down by 11.1 percent year on year; the decline in May narrowed to 6.7 percent; and that in June shifted from decline to an increase of 3.1 percent year on year, or up by 0.53 percent month on month.

 

6. Investment in Fixed Assets Continued to Grow and Investment in High-tech Industries and Social Sectors Grew Fast.

 

In the first half year, the investment in fixed assets (excluding rural households) reached 27,143.0 billion yuan, up by 6.1 percent year on year. Specifically, in the first half year, the investment in infrastructure was up by 7.1 percent, manufacturing up by 10.4 percent, real estate development down by 5.4 percent. The floor space of commercial buildings sold reached 689.23 million square meters, down by 22.2 percent; the total sales of commercial buildings were 6,607.2 billion yuan, down by 28.9 percent. By industry, the investment in the primary industry went up by 4.0 percent, the secondary industry up by 10.9 percent, and the tertiary industry up by 4.0 percent. The private investment was up by 3.5 percent. The investment in high-tech industries grew by 20.2 percent, of which the investment in high-tech manufacturing and high-tech services increased by 23.8 percent and 12.6 percent respectively. In terms of high-tech manufacturing, the investment in manufacturing of electronic and communication equipment and in manufacturing of medical equipment, measuring instruments and meters grew by 28.8 percent and 28.0 percent respectively. In terms of high-tech services, the investment in services for transformation of scientific and technological achievements and in research, development and design services went up by 13.6 percent and 12.4 percent respectively. The investment in social sectors went up by 14.9 percent, among which the investment in health and education went up by 34.5 percent and 10.0 percent respectively. In the second quarter, the investment in fixed assets (excluding rural households) witnessed a year-on-year increase of 4.2 percent. Specifically, the growth rate was 1.8 percent in April, accelerated to 4.6 percent in May and rebounded further to 5.6 percent in June. In June, the investment in fixed assets (excluding rural households) went up by 0.95 percent month on month.

 

7. Imports and Exports of Goods Grew Fast and Trade Structure Continued to Optimize.

 

In the first half year, the total value of imports and exports of goods was 19,802.2 billion yuan, an increase of 9.4 percent year on year. The total value of exports was 11,141.7 billion yuan, up by 13.2 percent. The total value of imports was 8,660.5 billion yuan, up by 4.8 percent. The trade balance was 2,481.2 billion yuan in surplus. The imports and exports of general trade increased by 13.1 percent, accounting for 64.2 percent of the total value of the imports and exports, 2.1 percentage points higher than that of the same period last year. The imports and exports by private enterprises increased by 13.6 percent, accounting for 49.6 percent of the total value of imports and exports, 1.9 percentage points higher than that of the same period last year. The imports and exports of mechanical and electronic products increased by 4.2 percent, accounting for 49.1 percent of the total value of the imports and exports. In June, the total value of imports and exports was 3,765.7 billion yuan, an increase of 14.3 percent year on year. The total value of exports was 2,207.9 billion yuan, up by 22.0 percent. The total value of imports was 1,557.8 billion yuan, up by 4.8 percent.

 

8. Consumer Price Saw Mild Growth and Growth of Producer Prices for Industrial Products Continued to Decline.

 

The consumer price index (CPI) went up by 1.7 percent year on year in the first half year. Grouped by commodity categories, prices for food, tobacco and alcohol were up by 0.4 percent year on year; clothing up by 0.5 percent; housing up by 1.2 percent; articles and services for daily use up by 1.0 percent; transportation and communication up by 6.3 percent; education, culture and recreation up by 2.3 percent; medical services and health care up by 0.7 percent; and other articles and services up by 1.2 percent. In terms of food, tobacco and alcohol prices, prices for pork went down by 33.2 percent, grain up by 2.4 percent, fresh fruits up by 12.0 percent and fresh vegetables up by 8.0 percent. Core CPI excluding the prices of food and energy went up by 1.0 percent. In the second quarter, the consumer price index went up by 2.3 percent year on year. Specifically, the consumer price index increased by 2.1 percent year on year both in April and in May and rose by 2.5 percent year on year and maintained the same level of growth month on month in June.

 

In the first half year, the producer prices for industrial products went up by 7.7 percent year on year, with a year-on-year growth of 6.8 percent in the second quarter. Specifically, it grew by 8.0 percent in April and 6.4 percent in May year on year; up by 6.1 percent year on year and maintained the same level of growth month on month in June. The purchasing prices for industrial producers went up by 10.4 percent year on year in the first half year, and up by 9.5 percent year on year in the second quarter. Specifically, it grew by 10.8 percent and 9.1 percent year on year in April and in May respectively; up by 8.5 percent year on year and 0.2 percent month on month in June.

 

9. Employment Improved and Surveyed Unemployment Rate in Urban Areas Went Down.

 

In the first half year, the newly increased employed people in urban areas totaled 6.54 million. The surveyed unemployment rate in urban areas averaged 5.7 percent in the first half year and 5.8 percent in the second quarter. In April, the surveyed unemployment rate in urban areas was 6.1 percent, with a consecutive decline of 5.9 percent and 5.5 percent in May and in June respectively. In June, the surveyed unemployment rate of population with local household registration was 5.3 percent and that of population with non-local household registration was 5.8 percent, of which that of population with non-local agricultural household registration stood at 5.3 percent. Specifically, the surveyed unemployment rates of the population aged from 16 to 24 and from 25 to 59 were 19.3 percent and 4.5 percent respectively. The urban surveyed unemployment rate in 31 major cities was 5.8 percent, 1.1 percentage points lower than May. The employees of enterprises worked 47.7 hours per week on average. By the end of the second quarter, the number of rural migrant workers totaled 181.24 million.

 

10. Residents Income Increased Stably and Urban-Rural Per Capita Income Ratio Narrowed.

 

In the first half year, the nationwide per capita disposable income of residents was 18,463 yuan, a nominal increase of 4.7 percent year on year. The real growth was 3.0 percent after deducting price factors. In terms of permanent residence, the per capita disposable income of urban households was 25,003 yuan, a nominal growth of 3.6 percent and a real growth of 1.9 percent year on year. The per capita disposable income of rural households was 9,787 yuan, a nominal growth of 5.8 percent and a real growth of 4.2 percent year on year. By sources of income, the nationwide per capita salary income, net business income, net property income and net income from transfers witnessed a nominal growth of 4.7 percent, 3.2 percent, 5.2 percent, and 5.6 percent respectively. The per capita income of urban households was 2.55 times that of rural households, 0.06 less than the same period last year. The median of the nationwide per capita disposable income was 15,560 yuan, a nominal increase of 4.5 percent year on year.

 

Generally speaking, with a series of policies to solidly stabilize the economy achieving notable results, the national economy has overcome the adverse impact of unexpected factors, demonstrating the momentum of a stable recovery. The second quarter, in particular, witnessed a positive economic growth and the stable macroeconomic performance was maintained, which are hard-earned achievements. However, we should be aware that the foundation for sustainable and steady recovery of the economy is yet to be consolidated due to: externally, the risk of stagflation in the world economy is rising, the policies of major economies tend to be tightened, and external instabilities and uncertainties are adding obviously; and domestically, the impact of epidemic is lingering, shrinking demand intertwines with disrupted supply, structural problems combines with cyclical problems and market entities still face operation difficulties. At the next stage, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, apply the new development philosophy in full, in the right way, and in all fields of endeavor, follow the requirements of containing the epidemic, stabilizing the economy and keeping development secure, respond to COVID-19 and pursue economic and social development in a well-coordinated manner, take advantage of the critical period of economic recovery, adopt strong measures to promote the implementation of a package of policy measures to maintain stable economy, continue to ensure stability on six fronts and maintain security in six key areas, continue to enhance efficiency, stimulate vitality and add impetus, and constantly consolidate the foundation for a steady economic recovery to keep the major economic indicators within the appropriate range.

 

Notes:

 

1. The growth rate of GDP and its sub-items are calculated at constant prices. The growth rates of value added of industrial enterprises above designated size and its sub-items are real growth rates 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, revisions are made to quarter-on-quarter growth of GDP and to 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. The revised figures, quarter-on-quarter GDP growth for the second quarter of 2022 and month-on-month changes of other indicators for June 2022 are as follows:

 

The quarter-on-quarter growth of GDP in 2021 and in the first and second quarter of 2022 are 0.6 percent, 1.5 percent, 0.4 percent, 1.4 percent, 1.4 percent and -2.6 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

(%)

June 2021

 0.48

 0.24

 0.28

July 2021

 0.32

 0.27

-0.16

August 2021

 0.30

 1.13

 0.66

September 2021

 0.05

 0.97

 0.36

October 2021

 0.41

 0.81

 0.58

November 2021

 0.38

 1.11

 0.27

December 2021

 0.40

 0.06

 0.80

January 2022

 0.34

 0.32

 0.51

February 2022

 0.51

 0.37

 0.42

March 2022

 0.41

 0.48

-2.04

April 2022

-4.10

-0.78

-0.21

May 2022

 4.22

 0.83

 0.03

June 2022

 0.84

 0.95

 0.53

 

3. Industrial enterprises above designated size are industrial enterprises with annual revenue from principal business over 20 million yuan.

 

As industrial enterprises above the designated size change every year, to ensure the data comparability between years, the coverage of the data of the same period last year used for estimating year-on-year growth rates like that of products output, are as consistent as possible with the current period and different from the coverage of the data published last year. The main reasons are as follows: First, the statistical units change. Every year, some enterprises are included in the survey as they meet the threshold, while some enterprises are removed from the survey because of downsizing. Besides, enterprises that have newly gone into operation, been bankrupted, canceled their registrations or had their business licenses revoked also cause impact. Second, duplicated outputs across regions of enterprise groups have been removed based on the ad hoc surveys since duplication is found in the products output of some enterprise groups.

 

4. The Index of Services Production is the change of production in the reporting period compared to the base period with the price factors deducted.

 

5. The scope of the total retail sales of consumer goods include all legal entities, establishments and self-employed individuals involved in retail trades or providing catering services. Specifically, businesses above the designated size include wholesale enterprises (businesses, self-employed individuals), retail enterprises (businesses, self-employed individuals) and lodging and catering enterprises (businesses, self-employed individuals) with annual revenue from principal business over 20 million yuan, 5 million yuan and 2 million yuan respectively.

 

As the wholesale, retail, and lodging and catering enterprises (businesses, self-employed individuals) above the designated size change every year, to ensure the data comparability between years, the coverage of the data of the same period last year used for estimating year-on-year growth rates like that of the retail sales of consumer goods by businesses above the designated size is consistent with the current period and different from the coverage of data published last year. The main reasons are: some enterprises (businesses, self-employed individuals) are included in the survey as they meet the threshold, while some enterprises (businesses, self-employed individuals) are removed from the survey because of downsizing every year. Besides, enterprises (businesses, self-employed individuals) that have newly gone into operation, been bankrupted, canceled their registrations or had their business licenses revoked also cause impact.

 

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). Goods and services include physical goods and non-physical goods (e.g. virtual goods and services).

 

The total retail sales of consumer goods include the online retail sales of physical goods, but not the non-physical goods.

 

6. Employed people refer to people aged 16 and above who have the ability to work and engage in gainful employment for remuneration payment or business income.

 

7. The median of the nationwide per capita disposable income of residents 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.

 

8. Data of imports and exports are from the General Administration of Customs; data of newly increased employed people in urban areas are from the Ministry of Human Resources and Social Security.

 

9. 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.

Annex
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