Press Release

The Overall Economic Development of Beijing was Stable and Maintained Steady Progress from Q1 to Q3

  Since the beginning of this year, the city has been guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and has been embracing the conclusions of the 19th National Congress of the Communist Party of China (CPC). The city has been adhering to the new development philosophies and focusing closely on the urban strategic positioning for capital. In line with the requirements of promoting high-quality development, the Municipality actively presses ahead with all works. The overall economic development of Beijing is stable and maintains steady progress.

 

  According to preliminary calculation, the city’s GDP in the first three quarters totaled RMB 2.15111 trillion, up by 6.7% YoY based on comparable price, showing a fall of 0.1 percentage point in the growth rate as compared with the first half year. By industries, the value added of the Primary Industry was RMB 7.94 billion, down by 10.5%; the value added of the Secondary Industry was RMB 373.49 billion, up by 4.9%; the value added of the Tertiary Industry was RMB 1.76968 trillion, up by 7.2%.

 

Accumulative Growth Rates of GDP since 2016 (%)

 

 

  1. The agriculture production continued to shrink and ecological function of agriculture was increasingly enhanced.

 

  The adjustment and reduction of agricultural production functions were accelerated. In the first three quarters, the city’s gross output value of agriculture, forestry, animal husbandry and fishery reached RMB 19.29 billion, down by 11.4% YoY; of which, the forestry output value increased by 15.9%, driven by the new round of million mu afforestation project. The planting structure of facility agriculture was optimized, and the benefit level improved; the average benefit per mu increased by 6.4% YoY.

 

  2. Industrial production grew steadily, and high-end industries maintained growing at a relatively high speed.

 

  From Q1 to Q3, the added value of industrial enterprises above designated size in the city rose by 7.2% YoY based on comparable price. Of which, the added value of hi-tech manufacturing and strategic emerging industries (there were overlaps between the two) rose by 16.8% and 11.2% respectively, 9.6 percentage points and 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 19.9%, that of the pharmaceutical manufacturing increased by 18.6%, and that of automobile manufacturing increased by 0.5%.

 

  From January to August, the labor productivity of industrial enterprises above designated size reached RMB 439,000/person, up by RMB 61,000/person YoY.

 

Accumulative Growth Rates of Added Value in Industrial Enterprises

above Designated Size since 2016 (%)

 

 

  3. The Tertiary Industry grew steadily and advantaged sectors played a leading role.

 

  From Q1 to Q3, added value of the Tertiary Industry in the city increased by 7.2% YoY, 0.5 percentage points higher than the GDP growth rate of the city. Specifically, the advantaged sectors, such as finance, information services, technology services, etc., contributed a total of 63.3% to economic growth in the city, and continued to play a key leading role. Of which, the financial sector achieved RMB 380.73 billion of added value, up by 7.3%; the sector of scientific research and technology service realized RMB 260.89 billion of added value, up by 8.1%; and the sector of information transmission, software and IT service realized an added value of RMB 259.57 billion, up by 18.2%.

 

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

 

 

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

 

  From Q1 to Q3, the total investment in fixed assets of Beijing declined by 12.7% YoY, with a decline of 1.7 percentage points lower than that of the first half year. Of which, the investment in infrastructures fell by 12.1%, and the investment in real estate development decreased by 3%. By sectors, the investment in Primary Industry fell by 12.3%; that in the Secondary Industry declined by 42.3%; the investment in the Tertiary Industry (including real estate development) dropped by 9.7%, of which, the investment in the sector of information transmission, software and IT service, the sector of transportation, storage and postal services and the sector of scientific research and technology service grew by 33.9%, 14.6% and 10% respectively.

 

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

 

 

  From Q1 to Q3, the area of newly constructed commercial housing of the city reached 15.08 million square meters, increasing by 5.9% YoY; of which, the area of newly built residential buildings amounted to 8.02 million square meters, increasing by 25.9%. Area of sold commercial housing amounted to 4.071 million square meters, decreasing by 27.9%; of which, area of sold residential buildings amounted to 3.052 million square meters, declining by 17.7%.

 

  Construction of affordable housing was accelerated. From Q1 to Q3, the investment in affordable housing of the city increased by 37.8% YoY; the new construction area was 6.586 million square meters, increasing by 23.1% YoY; the sales area amounted to 1.217 million square meters, accounting for 29.9% of the sales area of the newly constructed commercial housing, up by 7.4 percentage points YoY.

 

  5. Market consumption grew rapidly and the consumption structure continued to be optimized.

 

  In the first three quarters, the total market consumption in the city hit RMB 1.83815 trillion, up by 7.9% YoY. Of which, service consumption achieved RMB 999.39 billion, up by 11.3%, accounting for 54.4% of total market consumption and contributing 75.5% of the total consumption growth; the consumption of transportation and communication, education, culture and entertainment services increased by 12.8% and 12.2% respectively.

 

  Total retail sales of consumer goods amounted to RMB 838.76 billion, up by 4.1%; of which, the on-line retail volume of wholesale and retail enterprises above designated size reached RMB 177.81 billion, up by 17.4% and driving the city’s increase of total retail sales of consumer goods by 3.3 percentage points. By consumption pattern, income from retail sales of goods was RMB 755.81 billion, up by 3.7%; income from catering was RMB 82.95 billion, up by 8.1%. By commodity category, the retail sales of domestic commodities, household appliances and audio-visual equipment,  E-publications and audiovisual products respectively increased by 27.5%, 18.1% and 16.8%.

 

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

 

 

  6. Moderate rise in Consumer Price Index (CPI), Producer Price Index (PPI) stable

 

  From Q1 to Q3, CPI in the city rose by 2.5% YoY. In specific, the price of consumer goods rose by 1.6% and that of services went up by 3.8%. In eight categories of commodities and service items, the prices of seven categories increased while the price of one category dropped. The price of food, tobacco & alcohol grew by 2.9%; price of housing grew by 3.5%; price of household goods & services grew by 1.2%; price of transportation & communication grew by 0.9; price of culture & entertainment grew by 3.2%, price of healthcare grew by 3.4%; price of other supplies & services grew by 2.1%; price of clothing fell by 0.9%. In September, the overall CPI increased by 2.8% YoY and 0.1% month on month.

 

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

 

 

  From Q1 to Q3, PPI remained the same as last year and Industrial Production Index (IPI) increased by 0.7% YoY. In September, PPI and Industrial Production Index (IPI) increased by 0.6% and 1.4% respectively YoY, and respectively remained the same and increased by 0.3% month on month.

 

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

 

 

  7. Resident income increased steadily.

 

  From Q1 to Q3, the per capita disposable income of residents in the city was RMB 46,426, up by 8.9% YoY and up by 6.2% in real terms on inflation-adjusted basis. Three of the four incomes increased and the remaining one income fell: property net income increased by 13.6%; transfer net income increased by 12.4%; wage income increased by 7.4%; and operating net income slipped by 9.8%.

 

  On the whole, the overall economic development of the city was stable and maintained steady progress in the first three quarters. Next, we will be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, adhere to the overall work tone of steady progress, deepen the supply-side structural reform upon focusing on the strategic positioning of the capital and in accordance with the high quality development requirements; efforts will be made to strengthen the endogenous driving force and to expand effective demand, thus promoting high-quality economic-social development of Beijing.