Press Release

Beijing Maintains Overall Stable and High-quality Economic Development in the First Half of 2019

  Since the start of the year 2019, Beijing has adhered to the overall work tone of “making progress while maintaining stability” and adopted new development concepts under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. According to the requirements of promoting high-quality development, the city is advancing its work in all respects, as a result of which its economy has maintained stable and high-quality development in the first half of the year.

  

  According to preliminary calculation, the city’s GDP in the first half of the year totaled RMB 1,521.25 billion, increasing by 6.3% YoY based on comparable price. By industries, the value added of the primary industry was RMB 4.94 billion, up by 17.5%; the value added of the secondary industry was RMB 257.26 billion, up by 5.0%; and the value added of the tertiary industry was RMB 1,259.05 billion, up by 6.5%.

  

Accumulative Growth Rates of GDP since 2018 (%)

 

  

  1. The tertiary industry, strongly underpinned by the finance, information, technology, and other industries, operated stably

  

  In the first half of 2019, the value added of the tertiary industry increased by 6.5% YoY. In specific, advantaged sectors such as finance, information service, and technology service combined contributed 67.0% to economic growth of the city. When it comes to value added, the financial sector posted RMB 293.47 billion, up by 9.1%; the information transmission, software and information technology services sector posted RMB 181.18 billion, up by 13.7%; and the scientific research and technical services sector posted RMB 177.25 billion, up by 8.4%.

 

Accumulative Growth Rates of Value Added in the Tertiary Industry since 2018 (%)

 

 

  2. Industrial production remained stable and the high-end industries played a significant driving role

  

  During the first half of the year, the value added of industries above designated size, based on comparable price, increased by 3.5% YoY. In key sectors, the production and supply of electric and heating power industry grew by 8.7%; the pharmaceutical manufacturing industry grew by 6.3%; the computers, communications and other electronic equipment manufacturing industry increased by 3.1%; and the automobile manufacturing industry increasedby 1.1%. High-end industries played a leading role. The value added of high-tech manufacturing industry and strategic emerging industries [1] grew by 6.0% and 5.6% respectively, both contributing over 40% to the growth of industries above designated size.

  

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

 

  

  3. Agriculture played a more prominent function in ecology and urban agriculture saw improved quality and efficiency

  

  The ecological function of agriculture was further strengthened. In the first half of the year, driven by the new round of “1 million mu afforestation project”, Beijing posted RMB 12.03 billion in total output value of agriculture, forestry, animal husbandry and fishery, up by 13.7% YoY. In specific, the output value of forestry reached RMB 5.63 billion, increasing by 100%. Urban modern agriculture underwent further transformation and upgrading. Sightseeing agriculture saw both its quality and efficiency further improved, with an average 9.4% income growth in tourist parks and a 7% growth in per capita consumption of tourists. Meanwhile, facility agriculture improved its benefit per mu, with its output value per mu standing at RMB 14,000, up by 17.6%.

  

  4. Investment maintained rapid growth and investment in industries in tune with Beijing’s functional positioning as the capital saw solid growth

  

  In the first half of 2019, the city’s fixed-asset investment (excluding peasant household) increased by 14.7% YoY. By industries, investment in the primary industry increased by 120%; investment in the secondary industry declined by 8.2%; and investment in the tertiary industry grew by 15.1%. Investment in industries chiming with Beijing’s functional positioning as the capital saw rapid growth. Specifically, investment in renting and leasing activities and business services grew by 290%; investment in culture, sports and entertainment grew by 95.1%; and investment in scientific research and technical services grew by 93.8%.

  

  In the first half of the year, investment in real estate development increased by 16.4% YoY. The area of newly constructed commercial housing of the city reached 9.711 million square meters, up by 10.4%. The area of sold commercial housing amounted to 3.879 million square meters, up by 68.7%. Specifically, the area of sold affordable housing stood at 1.427 million square meters, up by 140%.

  

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

 

   

  5. Market consumptiongrowth accelerated and the consumption on services and goods both gained speed

  

  During the first half of the year, the total market consumption registered RMB 1,296.99 billion, up by 8.2% YoY, with the growth rate 1.4 percentage points higher than that in the first quarter. In terms of internal structure, service consumption reached RMB 728.25 billion, increasing by 10.4% (with the growth up by 1.2 percentage points), accounting for 56.1% of total market consumption, and contributing 70.4% to the total consumption growth.

  

  Total retail sales of consumer goods amounted to RMB 568.75 billion, up by 5.4%, with the growth increasing by 1.6 percentage points. Specifically, online retail sales of wholesale and retail enterprises above designated size reached RMB 149.58 billion, up by 25.1%. By categories of goods, the retail sales of wholesale and retail enterprises above designated size in cosmetics, cultural & office supplies, home appliance & audio-video equipment grew by 21.5%, 21.4%, and 16.9% respectively.

  

Accumulative Growth Rates of Total Retail Sales of Consumer Goods since 2018 (%)

 

   

  6. CPI saw a mild hike and PPI remained stable on the whole

  

  During the first half of 2019, the CPI of the city rose by 1.9% YoY. In specific, the price of consumer goods hiked by 2.1% and that of services increased by 1.7%. Among 8 types of goods and service items, the price of 7 types increased while that of the other 1 type dropped. When it comes to prices, food, tobacco & alcohol rose by 4.2%; clothing rose by 2.5%; housingrose by 1.6%; living supplies and services rose by 0.4%; education, culture, and entertainment rose by 2.0%; medical and healthcare rose by 2.6%; other supplies and services rose by 1.4%; while transportation and communications dropped by 2.5%. In June, CPI increased by 2.6% YoY and 0.3% month-on-month.

  

Year-on-year Increase/Decrease Rate of Consumer Price in the Same Month since 2018 (%)

 

    

  In the first half of the year, the PPI fell by 0.5% YoY and IPI rose by 0.1% YoY. In June, the PPI rose by 0.1% YoY and 0.1% month-on-month; the IPI rose by 0.1% YoY and 0.2% month-on-month.

  

Year-on-year Increase/Decrease Rate of PPI and IPI in the Same Month since 2018 (%)

 

     

  

  7. Employment situation remained stable and resident income grew steadily

  

  In Q2, the city’s surveyed unemployment rate stood at as low as 4.2%.

  

  In the first half of 2019, the per capita disposable income of residents in the city was RMB 33,860, increasing 8.9% YoY and 6.9% YoY in real terms after deducting the price factor. The income in four aspects all achieved positive growth. Income from wages grew by 8.9% YoY; net income from property grew by 4.0% YoY; net income from operations grew by 0.5% YoY; and net income from transfer grew by 14.4% YoY.

  

  On the whole, in the first half of 2019, Beijing’s economy remained stable, the economic structure was continuously optimized, and the quality and efficiency of economic development were constantly improved. However, we should be mindful that the macro-economic environment remains complicated and unstable while uncertain external factors are on the rise. Going forward, we will continue to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, adhere to the overall work tone of “making progress while maintaining stability”, push hard and rise to challenges by focusing on supply-side structural reform to promote steady&healthy economic development and to celebrate the 70th anniversary of the People’s Republic of China with remarkable achievements.

  

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  [1] The high-tech manufacturing industry and strategic emerging industries are intersected.