Phoenix TV:
What were the contribution rates of the fourth quarter's economic growth and the “troika” (investment, consumption and exports) to the overall economic growth of 2021? On the basis of the data, what progress has been made in the construction of a new development paradigm? In addition, in the face of the complex economic situation, how do you think the impetus of economic growth will shift? Thank you.
Ning Jizhe:
The impetus of economic growth can be measured from the perspective of supply, or in other words, the three industries. It can also be measured from the perspective of demand, or in other words, the “troika.” So, your question is very targeted. The year 2021 is the starting year for our country in forming a new development paradigm. In the face of multiple tests like the complex and severe international environment, and frequent and sporadic domestic outbreaks of the pandemic, China has taken advantage of its super large-scale market, continued to deepen reform and opening up, proactively boosted the domestic and global economy, and made strides toward establishing a new development paradigm. This was shown in four main aspects:
First, during the whole year, three key demands all made contributions to economic growth. In 2021, the final consumption expenditure, the gross capital formation, and the net export of commodities and services drove the economy to grow by 5.3, 1.1 and 1.7 percentage points, respectively, and their contribution rates to economic growth were 65.4%, 13.7% and 20.9%, respectively. In the fourth quarter, the final consumption expenditure, the gross capital formation, and the net export of commodities and services drove the economy to grow by 3.4, -0.5 and 1.0 percentage points, respectively, and their contribution rates to economic growth were 85.3%, -11.6% and 26.4%, respectively. Although the contribution rate of the gross capital formation to economic growth was negative, fixed assets investment rose after a fall in December. During the whole year, the planned gross investment of new projects grew by 3.3% year on year, rising consecutively in November and December with signs of rising from a fall.
Second, the principal role of domestic circulation was enhanced. We have further implemented the strategy of expanding domestic demand. The leading role of domestic circulation in economic development has been greatly enhanced. In 2021, the total retail sales of consumer goods in China exceeded 40 trillion yuan, up by 12.5% year on year. The fixed assets investment exceeded 50 trillion yuan, up by 4.9%. The contribution rate of domestic demand to economic growth reached 79.1%, growing by 4.4 percentage points compared with the previous year. Economic growth was mainly driven by domestic demand.
Third, domestic and international circulations reinforced each other. The advantage of a super large-scale market was displayed, and the expansion of domestic demand propelled imports. The advantages of complete industrial system and stable production capacity were given full play, and the expansion of external demand promoted exports. In 2021, China's total import and export volume reached a record high. Import and export volume grew by 21.5% and 21.2%, respectively, year on year. Both the domestic and external demands played important roles and interacted with each other.
Fourth, the cycle of production, distribution, circulation and consumption was improved. In the production link, the expansion of production laid a foundation for improving the cycle. In 2021, the added value of industrial enterprises with annual revenue of 20 million yuan or more grew by 9.6% year on year. Growth was seen in 95.1% of the industrial sector and 73.4% of products, respectively. In the distribution link, the growth of business income, salaries and profits were the main sources of the primary distribution. From January to November in 2021, the business income of 41 major industrial categories achieved growth year on year. Growth was seen in 100% of industries. The profits of 31 industries realized growth year on year. Growth was seen in over 80% of industries. The salaries of employees also increased. The revenue in national general public budget grew by 12.8% year on year, maintaining double-digit growth. In the circulation link, the smooth freight transport ensured the economic recovery and foreign trade. In 2021, China's freight transport volume and cargo throughput at ports increased by 12.4% and 6.8% over last year, respectively. In the consumption link, the expansion of employment and growth of incomes propped up the recovery in consumption growth. In 2021, China's per capita consumption expenditure grew by 12.6% in real terms year on year. Due to the impact of the year before last, the average growth rate of the past two years reached 4.0%.
In the face of the complex and severe economic situation, the fundamentals sustaining China's long-term economic growth and the advantages of forming a new development paradigm remain unchanged, and new drivers of economic growth will continue to emerge. In the next phase, the impetus of economic growth will come from not only the pull of the “troika,” but also the propelling of supply; not only the expansion of domestic demand, but also that of external demand; not only the increase of consumption, but also that of investment; and not only the promotion of reform, but also that of innovation. We have the confidence, strength, capacity and conditions to realize steady and sound economic development. Thank you.
