Press Release

Beijing Economic Development Maintained a Stable and Good Momentum in the First Half of 2018

  Since the beginningof this year, the whole city has been embracing the conclusions of the 19th National Congress of the Communist Party of China (CPC) and been guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Beijing focuses closely on new development philosophies and the urban strategic positioning of thecapital of China. In line with the requirements of promoting high-quality development, the Municipality actively presses ahead with all works. The economy of Beijing has maintained a stable and good momentum. 

 

   According to preliminary calculation, the city’s GDP in the first half year totaled RMB 1.40512 trillion, showing 6.8% of year-on-year growth based on comparable price and an increase of 0.1 percentage point in the growth rate as compared with the first quarter. By industries, the primary industry presented an added value of RMB 4.2 billion, decreasing by 14.7%; the secondary industry showed an added value of RMB 243.14 billion, increasing by 5.4%; the tertiary industry had an added value of RMB 1.15778 trillion, increasing by 7.2%. 

  

Accumulative Growth Rates of GDP since 2016 (%) 

 

 

   1. Agricultural production continued to shrink, structure optimization benefits saw improvements.   

 

    Agricultural production function accelerated adjustment and reduction. In the first half year, the gross output of farming, forestry, animal husbandry and fishery in the city reached RMB 10.59 billion, with a decrease of 18% over that in the previous year. At the same time, the benefit of urban modern agricultural structure optimization was improved. The output value of greenhouse with higher efficiency accounted for 97.6% of that of facility agriculture, up by 0.8 percentage points year on year;on average,the revenue from each sightseeing garden rose by 1.5% year on year.    

 

    2. Industrial production showed good growth and high-end industries were active.   

 

  In the 1st half year, the added value of industrial enterprises above designated size in Beijing rose by 8.3% over the last year, calculated based on comparable price, with a rise of 2.9 percentage points in the growth rate as compared with the first quarter. Specifically, the added value of the hi-tech manufacturing and strategic emerging industries (mutually intersected) grew by 17.1% and 12.7%, respectively, 8.8 and 4.4 percentage points higher than the average level of the industrial enterprises above designated size respectively. In key sectors, the added value of computers, communications and other electronic equipment manufacturing industry increased by 20.4%, that of the medicinemanufacturing industry increased by 19.1%, while that of automobile manufacturing industry increased by 4.7%. 

 

Accumulative Growth Rates of Added Value in Industrial Enterprises above Designated Size since 2016 (%) 

 

 

   3. The tertiary industry grewsteadily and advantaged sectors played a leading role. 

  

    In the first half year, added value of the tertiary industry in the city increased by 7.2% year on year, 0.4 percentage points higher than the GDP growth rate of the city. Specifically, the advantaged sectors, such as finance, information services, technology services, etc., contributed totally 58.6% to economic growth in the city, and continued to play a key leading role. The financial sector achieved an added value of RMB 263.97 billion, increasing by 6%; the sector of scientific research and technical services realized an added value of RMB 164.05 billion, increasing by 7.8%; the sectors of information transmission, software and information technology services realized an added value of RMB 163.04 billion, increasing by 18.3%. 

  

Accumulative Growth Rates of Added Value in the Tertiary Industry since 2016 (%) 

 

 

    

    

   As for the circulation field, transportation, storage, and postal services grew by 8.2%. Among public service sector, health and social services increased by 10.6%; and education grew by 8.4%.   

  

    4. Investment in fixed assets declined, and the investment in key sectors grew fast.   

 

  In the first half of year, the city completed a total investment in fixed assets ofRMB305.48 billion, down by 14.4% over the previous year. In specific, infrastructure investment reached RMB 100.62 billion, down by 9.7% and accounting for 32.9% (up by 1.7 percentage points over the previous year) of total investment in fixed assets; investment in real estate development reached RMB 144.63 billion, down by 7.5%. By industries, the investment in primary industry reached RMB 3.12 billion, down by 42%; that in the secondary industry amounted to RMB 18.65 billion, down by 39.6%; the investment in the tertiary industry (including real estate development) totaled RMB 283.71 billion, down by 11.5%, of which, the investment in the sector of information transmission, software and information technology services and the sector of transportation, storage and postal services grew by 54.7% and 9.3% respectively.  

 

Accumulative Growth Rates of Total Investment in Fixed Assets since 2016 (%) 

 

   In the first half year, new construction area of commercial residential buildingsof the city reached 9.093 million square meters, decreasing by 8.8% year on year. Of which,new construction area of commercial residential buildings amounted to 5.116 million square meters, increasing by 16.3%. Area of sold commercial buildingsamounted to 2.299 million square meters, decreasing by 46.2%. Of which, area of sold commercial residential buildings amounted to 1.614 million square meters, declining by 41.1%.    

  

    The security housing construction was accelerated. In the first half year, the city completed investment of RMB 51.79 billion in security housing, increasing by 43.6% year on year; the new construction area was 4.483 million square meters, accounting for 49.3% of the area of newly constructed commercial housing of the city, up by 9.2 percentage points over last year; the sales area amounted to 602,000 square meters, accounting for 26.2% of the sales area of the city’s newly constructed commercial housing, up by 5.7 percentage points year on year. 

  

   5. Market consumption grew rapidly, and the contribution of service consumption exceeded 70%.     

      

  In the first half year, total market consumption in the city hit RMB 1.19917 trillion with a year-on-year growth of 8.1%, which was 0.5 percentage points higher than the growth rate in the first quarter.   

Among which, the service consumption achieved RMB 659.38 billion, with an increase of 11.3%, accounting for 55% of the total market consumption,and contributed 74.6% to the total market consumption increase; the consumption of transportation and communication, education, culture and entertainment services increased by 14.2% and 12.5% respectively.   

  

    The total retail sales of consumer goods reached RMB 539.79 billion, up by 4.4%; among which, the on-line retail volume of wholesaling and retailing enterprises above designated size reached RMB 113.73 billion, up by 22% and driving the whole city’s increase of total retail sales of consumer goods by 4 percentage points. According to consumption patterns, income from retail sales of goods was RMB 486.32 billion, with an increase of 4%; income from catering was RMB 53.48 billion, with an increase of 8.4%. From the commodity category, retail sales of household appliances and audio-visual equipment, E-journals and audiovisual products and cultural office supplies respectively increased by 23.7%, 23% and 10.4%. 

  

Accumulative Growth Rates of Total Retail Sales of Consumer Goods since 2016 (%) 

 

 

   6. Consumer Price Index (CPI) showed a moderate increase trend and Producer Price Index (PPI) wasstable.      

 

  In the first half year, CPI in the city increased by 2.3% year on year, which was at the same level as that of the first quarter. The price of consumer goods rose by 1.1%, and that of service items went up by 4%. In 8 types of commodities and services, the price of 7 types increased while 1 dropped. The price of food, tobacco & alcohol increased by 2.4%, with living up by 3.6%; daily articles & service up by 1.2%; transportation & communication up by 0.7%; education, culture & entertainment up by 2.5%; healthcare up by 4.3%; other items & services up by 2.1%; and clothing down by 1.3%. In June, the overall CPI increased by 2.2% year on year and decreased by 0.5% month on month. 

 

Monthly Year-on-year Increase/Decrease Rate of CPI since 2016 (%) 

 

    In the first half year, PPI and IPI in the city respectively decreased and increased by 0.3% and 0.4% year on year. In June, the PPI and IPI respectively increased by 0.1% and 0.7% year on year, increasing by 0.2% and 0.1% month on month. 

  

Monthly Year-on-year Increase/Decrease Rate of PPI and IPI since 2016 (%) 

 

 

   7. Resident income grew more rapidly.    

        

  In the first half year, the disposable income of residents (per capita) in the city was RMB 31,079, increasing by 8.8% year on year and actually growing by 6.4% on inflation-adjusted basis, and the growth rate increased by 0.5 percentage points over Q1. Three of the four incomes increased and the remaining one fell: property net income increased by 13.2%; transfer net income increased by 9.7%; wage income increased by 8.4%; and operating net income slipped by 16.5%. 

 

   On the whole, in the first half year, the economy of Beijing maintained a steady and moderate trend of development. However, it is necessary to realize that the external environmental uncertainty has increased and unbalanced, inadequate development still exists. In the next stage, we must continue to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, responding actively to the conclusions of 19th National Congress of the CPC, the Central Economic Work Conference, as well as the 4th Plenary Session of the 12th Municipal Party Committee, and remaining committed to the overall work tone of “steady progress”, taking the supply-side structural reform as the main line. Surrounding the urban strategic positioning of thecapital, we must strengthen innovation-driven development and speed up the establishment of a sophisticated economic structure, strengthen the endogenous power of economy, and actively resolve risk challenges, thus promoting high-quality socio-economic development of Beijing.