Press Release

Beijing’s Economy Sees a Good Start in Q1

  Since the start of the year, Beijing Municipality has been studying and implementing the guidelines of the 19th National Congress of the Communist Party of China (CPC) guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Beijing adheres to the overall work tone of “steady progress” and focuses closely on new development philosophies according to the capital’s strategic positioning. In line with the requirements of promoting high-quality development, Beijing energetically presses ahead with supply-side structural reform and strengthens counter-cyclic adjustments. As a result, Beijing’s economy has seen a wonderful start in Q1.

  

  According to preliminary calculation, Beijing’s GDP registered RMB 740.96 billion in Q1, increasing by 6.4% YoY based on comparable price with the growth rate being 0.2 percentage points lower than that of the previous year. By industries, the value added of the Primary Industry was RMB 1.5 billion, down by 6.4%; the value added of the Secondary Industry was RMB 128.46 billion, up by 6.7%; the value added of the Tertiary Industry was RMB 611 billion, up by 6.3%.

  

  Accumulative Growth Rates of GDP since 2018 (%)

  

  

  1. Agricultural restructuring gained speed and the ecological function became more prominent

  

  Beijing continued to advance agricultural restructuring, the quality benefit of urban modern agriculture has been steadily improved, and traditional agriculture continued to shrink. In Q1, the average income/mu of facility agriculture was RMB 16,000, up by 20.8% YoY; the revenue from sightseeing garden totaled RMB 430 million, per capital consumption of tourists increased by 5.4%. The realized gross output value of agriculture, forestry, animal husbandry and fishery reached RMB 3.84 billion, down by 5.0% YoY; of which, the forestry output value increased by 46.3% driven by the new round of million mu afforestation project; the ecological function of agriculture was continuously strengthened.

  

  2. Industrial production grew well, the output of new products increased rapidly

  

  In Q1, the value added of industrial enterprises above designated size in Beijing rose by 7.9% YoY based on comparable price. In key sectors, the value added of automobile manufacturing industry increased by 13.8%, that of production and supply of electricity and heating power increased by 10.5%, that of computers, communications and other electronic equipment manufacturing industry increased by 8.7%, and that of medicine manufacturing industry increased by 1.7%. The output of new products increased rapidly: 2.5 times and 17.3% for new energy automobile and smart TV respectively.

  

  Accumulative Growth Rates of Value Added in Industrial Enterprises above Designated Size since 2018 (%)

  

  

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

  

  In Q1, the value added of the Tertiary Industry in Beijing increased by 6.3% YoY. Specifically, the advantaged sectors, such as finance, information services and technology services, contributed totally 60.9% to the economic growth. The finance sector achieved value added of RMB 133.39 billion, increasing by 7.7%; the sectors of information transmission, software and information technology services realized value added of RMB 97.1 billion, increasing by 14.0%; the sector of scientific research and technical services realized value added of RMB 85.87 billion, increasing by 6.0%.

  

  Accumulative Growth Rates of

  Value Added in the Tertiary Industry since 2018 (%)

  

  

  

  4. Investment in fixed assets grew rapidly; the construction of security housing was accelerated

 

  In Q1, the total investment in fixed assets of Beijing (excluding peasant households) increased by 16.9% YoY. The investment in infrastructures rose by 14.2%, the investment in real estate development grew by 24.0%, and the private investment increased by 13.6%. By sectors, the investment in the Primary Industry declined by 33.5%; the investment in the Secondary Industry grow by 5.4%, of which, investment in high-tech manufacturing sector grew by 11.0%; the investment in the Tertiary Industry grew by 18.6%, of which, the investment in the sector of information transmission, software and information technology service grew by 25.6%, the investment in the sector of culture, sports and entertainment grew by 89.3%, the investment in renting and leasing activities and business services grew by 1.2 times, and the investment in finance sector increased by 22.9%.

 

  In Q1, the area of newly constructed commercial housing reached 3.709 million square meters, increasing by 1.4 times YoY (down by 52.7% YoY last year). The area of sold commercial housing amounted to 1.477 million square meters, increasing by 87.2% YoY (down by 66% YoY last year).

 

Accumulative Growth Rates of Area of Sold Commercial Housing since 2018 (%)

  

  In Q1, the investment in security housing increased by 46.5%; the new construction area was 1.468 million square meters, increasing by 1.5 times, accounting for 39.6% of the area of newly constructed commercial housing, increasing by 1.3 percentage points YoY. The sales area of security housing amounted to 630,000 square meters, increasing by 2.2 times, accounting for 42.7% of the sales area of commercial housing, up by 18.0 percentage points YoY.

 

  5. Market consumption showed steady growth trend, the contribution of service consumption was outstanding

 

  In Q1, the total market consumption in Beijing hit RMB 628.01 billion, up by 6.8% YoY. Of which, service consumption achieved RMB 352.68 billion, up by 9.2%, accounting for 56.2% of total market consumption, growing by 1.3 percentage points over the same period of the previous year, and contributing 74.5% to the total consumption growth.

 

  Total retail sales of consumer goods amounted to RMB 275.34 billion, up by 3.8%. Of which, the commodity retail sales was RMB 247.28 billion, up by 3.5%; and the income from catering was RMB 28.06 billion, up by 6.9%. Among the commodity retail sale, the consumption upgrading commodity showed good increasing potential. Among the wholesaling and retailing enterprises above designated size, the retail sales of cosmetics, stationery and office supplies, household appliances and audio-visual equipment as well as communication equipment increased by 15.3%, 15.1%, 10.0% and 9.3% respectively. On-line sale still played a prominent role in driving the increase of total retail sales of consumer goods; the on-line retail volume of wholesaling and retailing enterprises above designated size reached RMB 68.57 billion, up by 25.2%.

 

Accumulative Growth Rates of

Total Retail Sales of Consumer Goods since 2018 (%)

  

    

  6. Consumer Price Index (CPI) showed moderate rise and the Producer Price Index (PPI) was generally stable

 

  In Q1, Beijing’s CPI increased by 1.8% YoY. In specific, the price of consumer goods rose by 1.7% and that of services went up by 1.9%. In 8 categories of commodities and service items, the prices of 7 categories increased while the price of 1 category dropped: the price of food, tobacco & alcohol grew by 3.1%; the price of clothing grew by 2.7%; the price of housing grew by 2.2%; the price of household goods & services grew by 0.6%; the price of education, culture & entertainment grew by 3.1%; the price of healthcare grew by 1.6%; the price of other supplies & services grew by 1.4%; and the price of transportation & communication fell by 3%. In March, CPI increased by 1.9% YoY and fell by 0.4% QoQ.

 

Monthly Year-on-year Increase/Decrease Rate of CPI since 2018 (%)

  

    

  In Q1, Beijing’s PPI dropped by 1.0% YoY and IPI increased by 0.1% YoY. In March, PPI decreased by 0.9% YoY and remained the same QoQ; IPI increased by 0.3% YoY and remained the same QoQ.

 

Monthly Year-on-year Increase/Decrease Rate of PPI and IPI since 2018 (%)

     

  7. Employment situation was stable, resident income increased steadily

 

  In Q1, the surveyed urban unemployment rate of Beijing was 4%, remaining at a relatively low level.

 

  In Q1, the per capita disposable income of residents was RMB 17,069, up by 8.3% YoY and up by 6.4% in real terms on inflation-adjusted basis. All the four income categories increased: wage income increased by 8.8% YoY; operating net income increased by 3.3% YoY; property net income increased by 3.8% YoY; and transfer net income increased by 11.1% YoY.

  

  On the whole, the economy of Beijing witnessed a good start in Q1, and steady progress was made in high-quality development. Nonetheless, we must be aware that the macro-economic environment is still complicated, the development is still unbalanced and inadequate, the supply-side structural reform remains a daunting challenge and the economy still faces downward pressure. Moving forward, we must continue to uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, conscientiously implement the work arrangements made at the Central Economic Work Conference, the national “two sessions” and the municipal “two sessions”, remain committed to the overall work tone of “steady progress” and pay close attention to the implementation of all kinds of work, so as to ensure steady and healthy economic development.