In 2017, we studied and implemented in depth the important instructions given by President Xi Jinping during his two inspections of Beijing. Upholding the general principle of “making progress while maintaining stability”, we focused on deepening the supply-side structural reform and accelerated all efforts in alignment with the Capital's strategic positioning. In 17H1, Beijing registered a stable yet improved economic performance.
Based on preliminary calculations, Beijing's Gross Regional Product (GRP) totaled RMB 1.24068 trillion in the first half of 2017, thanks to a y-o-y rise of 6.8% at comparable prices. By industry, the Tertiary Industry expanded its added value by 7.2% to RMB 1.01982 trillion, outpacing the Secondary Industry whose added value grew by 5.1% to RMB 215.91 billion and the Primary Industry whose added value recorded RMB 4.95 billion after a 1.4% decrease.
1. The urban-style modern agriculture revealed a sound momentum as a result of accelerated transformation of the agricultural industry.
In 17H1, the Agritourism registered a stable performance, as proved by a 7.8% y-o-y increase in the revenue generated by agricultural sightseeing gardens across the city to RMB 1.18 billion. The Exhibition Agriculture expanded its influence; agricultural fairs, exhibitions and celebrations received 3.983 million visits and generated RMB 220 million worth of revenue. The Protected Agriculture improved its economic performance and increased the average revenue by 6.2% to RMB 14,000 per mu.
The Traditional Agriculture continued to shrink. The Yield of Vegetable Crops and Edible Fungi reduced by 9.4% y-o-y, while the Outputs of Pigs, Sheep and Poultry dropped by 8.7%, 13.2% and 14.2% over the same timeframe of the previous year, respectively.
2. The industrial production improved steadily in terms of efficiency and benefits.
In 17H1, the Added Value of Industrial Enterprises above Designated Size in Beijing rose by 5.8% y-o-y on the basis of comparable prices. Among all key industries, Computer, Communications & Other Electronic Apparatus Manufacturing soared by 25.1%, Pharmaceutical Manufacturing grew by 19%, while Automobile Manufacturing skewed by 1.3% to the downside. To be specific, General-purpose Equipment Manufacturing, Special-purpose Equipment Manufacturing and Electric Equipment & Machinery Manufacturing advanced by 15.5%, 8.9% and 7.8%, respectively, to outpace the average industrial growth.
In 17H1, sales revenue of above-scale industrial enterprises registered RMB 827.3 billion, up 3.6% y-o-y. To be specific, income from exports pointed to RMB 47.53 billion, up 9.5%, and that from domestic sales to RMB 779.77 billion, up 3.3%.
From January to May, above-scale industrial enterprises logged RMB 58.41 billion in profits, up 7.2% y-o-y, and RMB 363,000 in per capita workforce productivity, up 7.5% y-o-y.
3. The tertiary industry grew steadily with continuous restructuring progress.
In 17H1, the Value Added of the Tertiary Industry increased by 7.2%, partially as a result of the stable progress of the financial, S&T service, information service and other advantageous sectors which contributed 49.7% in aggregate to the city’s economic growth. To be specific, the Value Added of the Financial Sector reached RMB 238 billion, up 7.4%; that of the Information Transmission, Software & Information Technology Service stretched to RMB 131.95 billion after a 9.3% increase; that of the Scientific Research & Poly-technical Service rose by 10% to RMB 121.18 billion.
The sectors of goods circulation improved at a steady pace. The Value Added of the Wholesale and Retail Trade experienced a 7.7% rise to RMB 119.06 billion, and that of the Transport, Storage and Post jumped by 13.1% to RMB 55.42 billion, outpacing the average growth of the tertiary industry by 0.5 and 5.9 percentage points, respectively.
Despite a smaller size, the sectors of public services exhibited a fast growth. In particular, the value added of the water conservancy, environment and public facility management sector grew by 10%, that of the education sector by 8.3%, and that of the sanitation and social work sector by 7.6%.
4. FAI curled upwards, leading to enhanced social benefits.
The Fixed-asset Investment (FAI) in Beijing expanded by 6.2% y-o-y to RMB 356.97 billion in the first half of this year, where RMB 107.19 billion were from the private sector. To be specific, driven by a stream of, among others, transport, energy, water and greening projects, RMB 111.39 billion were invested into infrastructure facilities, up 21.8% on a y-o-y basis. The FAI in the Primary Industry skyrocketed by 94.7% to RMB 5.38 billion, followed by a 20.8% increase in the Secondary Industry to RMB 30.87 billion as contributed by a 9.2% growth in high-tech manufacturing sector. In addition, the Tertiary Industry (incl. real-estate development) advanced by 4.2% to RMB 320.71 billion, where the Leasing & Commercial Service, Information Transmission, Software & Information Technology Service, and Scientific Research & Poly-technical Service soared by 170%, 28.8% and 12.9%, respectively.
In 17H1, RMB 156.38 billion were injected into the real-estate sector, down 6.4% y-o-y. The New Construction of Marketable Houses downsized by 25% over the same period of the previous year to 9.971 million m2. To be specific, the New Construction of Residential Buildings shrank by 19.5% to 4.398 million m2; the Marketable Houses Sold dropped considerably by 35% to 4.274 million m2, where 2.742 million m2 were for residential purposes (down 29.7%).
The construction of low-income houses made steady progress. In the first six months, Beijing invested RMB 36.07 billion in low-income housing, which meant a 0.7% y-o-y increase over the same period of the previous year. Altogether 36.59 million m2 started construction within this timeframe, up 8.4%; 875,000 m2 were sold, up 21.9%.
5. Market consumptions recorded a fast growth, as led by the expanding service consumptions.
In 17H1, the Gross Market Consumptions across Beijing rose by 9.3% y-o-y to RMB 1,118.32 billion, where Service Consumptions which grew by 12.7% to RMB 592.62 billion played a major role. To be specific, Health & Medical Care Service Consumptions, Education, Culture & Recreation Service Consumptions, and Transport & Communications Service Consumptions climbed by 16.5%, 13.8% and 10.4%, respectively. The Total Retail Sales of Consumer Goods arrived at RMB 525.7 billion as a result of a 5.6% increase.
To be specific, the Online Retail Sales by Wholesalers and Retailers above Designated Size added up to RMB 94.92 billion, exhibiting a 15.4% y-o-y increase. By consumption pattern, RMB 476.69 billion were gained through the Retail Sales of Goods, up 5.4%; RMB 49.01 billion were through Catering Services, up 7.6%. In terms of goods by category, New Energy Vehicles, Household Appliances, Music & Video Equipment, and Cultural & Office Articles saw considerable consumption needs, and grew by 69.8%, 21.3% and 13.3%, respectively, in the volume of retail sales.
6. CPI showed a moderate upward trend, while PPI and PPIRM kept mounting.
In 17H1, Beijing's Consumer Price Index (CPI) rose by 2% compared with the same period last year. To be specific, the Consumer Goods Price and Service Price picked up by 0.1% and 4.7%, respectively. Among eight categories of consumer goods and services, 7 recorded a higher price than the previous year, including Health & Medical Care (up 6.9%), Housing (up 4%), Education, Culture & Recreation (up 2.6%), Transport & Communications (up 0.8%), Daily Supplies & Services (up 0.3%), Food, Tobacco & Beverages (up 0.2%) and Other Goods & Services (up 3.7%). Apparel was the only category that witnessed a decline (down 2.2%). In June, CPI climbed by 2.5% y-o-y, despite a 0.4% m-o-m decrease.
In 17H1, the Producer Price Index (PPI) and Purchasing Price Indices of Raw Material (PPIRM) for industrial products rose by 1.2% and 5.7% over the same period of the previous year, respectively. These two indicators saw a respective 0.5% and 4% y-o-y increase in June after a slight decline of 0.4% and 0.1% over this May.
7. Personal income grew faster.
In 17H1, the Per Capita Disposable Personal Income of Beijing residents was RMB 28,566 after a 9.1% y-o-y increase or a 7% real-term growth after deduction of price factors. To be specific, this figure reached RMB 31,016 for urban dwellers and RMB 12,953 for rural residences, up 9% and 8.2% y-o-y, respectively.
In a nutshell, Beijing recorded a stable economic performance in the first half of 2017. The economic structure was also optimized to further enhance the quality and efficiency of economic growth. However, the macroeconomic environment remains complicated, as characterized by the global economic instability and uncertainty as well as the though tasks of national economic transformation and upgrading. In view of this, we shall continue to follow the important instructions given by CPC General Secretary Xi Jinping during his two inspections of Beijing, implement in real earnest the policies of the CPC Central Committee and the State Council, and put into practice the guidelines of the 12th Party Congress of Beijing. In addition, we shall further deepen the supply-side structural reform, and make solid efforts in decentralizing the Capital’s functions, shifting the development modes, taking environmental measures, working on the weakest links and facilitating collaboration in close alignment with the Capital's strategic positioning to maintain an upward economic trend while ensuring stability.
Zhang Yongming Chairman ...
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