China's New Economic Growth Drivers Index Increased by 19.5% in 2023

In order to dynamically monitor the changes in China's new economic growth drivers index, the Institute of Statistical Sciences of the National Bureau of Statistics monitoring of the new economic growth drivers on the basis of the Statistical Monitoring System for New Industries, New Formats and New Business Models. To better adapt to the new circumstances and requirements of economic and social development, and to more objectively and accurately reflect the changes in China’s new economic growth drivers index, the compilation method of the new economic growth drivers index has been revised (see Attachment). The new economic growth drivers for 2023 is calculated with 2022 as the base period. The results showed that China's new economic growth drivers index in 2023 (taking 2022 as 100) was 119.5, an increase of 19.5 percent over the previous year. In 2023, all sub-indexes increased compared with the previous year, among which the innovation driven index and network economy index contributed the most to the growth of the total index.

I. Innovation driven index. The innovation driven index in 2023 was 122.3, an increase of 22.3 percent over the previous year, with a contribution rate of 34.4 percent to the overall index growth.

II. Network economy index. The network economy index in 2023 was 122.1, an increase of 22.1 percent over the previous year, with a contribution rate of 34.0 percent to the overall index growth.

III. Transformation and upgrading index. The transformation and upgrading index in 2023 was 116.3, an increase of 16.3 percent over the previous year, with a contribution rate of 16.7 percent to the overall index growth.

IV. Economic vitality index. The economic vitality index in 2023 was 114.5, an increase of 14.5 percent over the previous year, with a contribution rate of 14.9 percent to the overall index growth.

New Economic Growth Drivers Index, Sub-indexes and Their Growth Rates in 2023

Attachment: Explanation of the Calculation of the New Economic Growth Drivers Index

I. Explanation of Revisions to Compilation Method of the New Economic Growth Drivers Index

The New Economic Growth Drivers Index is a composite index constructed with survey data from the “three new” (new industries, new business formats, new business models) by a linear weighting comprehensive evaluation method. The Institute of Statistical Science of National Bureau of Statistics of China has been calculating and publishing this index since 2018 to timely reflect the trends and progress of the new economic growth drivers.

In recent years, profound changes have occurred in the global environment and domestic conditions of China’s economic development. New growth drivers have been continuously cultivated and expanded, with new fields emerging and the contents richer and the momentum of transitions of growth drivers more significant. In line with the new deployments and requirements for new economic growth drivers outlined by the 20th CPC National Congress and the Third Plenary Session of the 20th Central Committee, to reflect new situations and trends more objectively and accurately, the Institute of Statistical Science of National Bureau of Statistics of China revises the compilation method. This revision is mainly about three aspects:

(1) Revisions to the Monitoring Index System

To better meet the intrinsic requirements of new quality productive forces and further enhance the relevance and effectiveness of monitoring indicators, this revision focuses on key areas and constructs a more refined monitoring index system, which reduces the number of primary indicators from five to four, and replaces some secondary indicators that are less effective in reflecting the current new economic growth drivers, and adds indicators that can better demonstrate features of advantages and growth points of new economic growth drivers. Key changes are made in:

1. Better Highlight the Leading Role of Innovation-Driven

The leading role of technological innovation in new economic growth drivers shall be reflected from two aspects. In terms of R&D investment, indicators such as “R&D expenditure” and “R&D personnel full-time equivalents per 10,000 people” are added to comprehensively and fully reflect R&D investment. And in terms of scientific and technological innovative results transformation, indicators such as “numbers of high-value invention patents owned by per 10,000 people” and “contract amount in technology market” reflect the quality of the scientific and technological innovative activities and achievements of innovative result transformation.

2. Comprehensively Reflect the Structural Optimization and Upgrading

Optimization and upgrading of structure are specific manifestations of new economic growth drivers. Indicators including “numbers of newly established business entities” and “numbers of high-tech enterprises” reflect that the vitality of microcosmic bodies boosts the structural upgrading; while, indicators including “the added value of strategic emerging industries” and “the added value of digital product-related industries” reflect the industrial optimization and upgrading.

3. Profoundly Reflect the In-depth Integrated Development

Integrated development is primarily reflected in the in-depth integration of digital technology and the real economy. Indicators including “mobile Internet access flow” and “numbers of 5G base stations” reflect network infrastructure construction and users’ consumption potential; while indicators including “online retail sales” and “express delivery volume” reflect the development of platform economy and new retail business formats.

4. Further Enrich Content Monitoring

In terms of foreign trade, indicators like “cross-border e-commerce export value” and “export value of three major tech-intensive green products (the new three)” reflect new foreign trade driving forces. For green development, “non-fossil energy consumption” reflects the efforts paid to achieve the “dual carbon” goals, injecting “green” driving forces into energy security and economic stability.

(2) Adjustments of Weights

By changing the weights of primary indicators, the new dynamics and contributions of new economic growth drivers are more fully reflected. With the calculation of the weight for index system by quantitative methods and expert scoring method, weights for the four primary indicators are then set in two ranges, 0.2 and 0.3.

(3) Revision of the Base Period

The base period for this revision is set as 2022 for taking 2022 as the base period aligns with the related deployments of the 20th CPC National Congress. In addition, considering the rapid growth and transformation of new economic growth drivers, the base period should not be too early.

Please note that due to changes in the index system and weights caused by different calculating methods, the results of this calculation are not comparable with previous ones.

II. Statistical Indicator System for The New Economic Growth Drivers Index

Table 1. Statistical Indicator System for The New Economic Growth Drivers Index and Weights

III. Calculation Method for New Economic Growth Drivers Index

The new economic growth drivers index is calculated using the fixed-base method. 2022 is taking as the base period (2022 = 100) in this calculation. The index value here represents the variation trend of new economic growth drivers compared to that of 2022. The specific steps are as follows:

1. Standardization of Basic Indicators

Where represents the corresponding index of , which represents the value of the reporting period, and represents the value of the base period.

2. Calculation of Classification Index

Where, is the weight of , is the index value of the classification, is the ordinal number of the first basic index in the whole index system in the category of , and is the ordinal number of the last basic index in the whole index system in the category of .

3. Calculation Formula of New Economic Growth Drivers Index

Among them, NEI is the new economic growth drivers index and is the weight of classification index of .

4. Calculation of Contribution Rate of Sub Index to Total Index Growth

Contribution Rate = (Sub Index in Reporting Period-Sub Index in Last Year) × Sub Index Weight / (Total Index in Reporting Period-Total Index in Last Year) × 100%