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Increasing residents' income is an important part of securing people's livelihood. In 2021, what were the features of residents' income growth? Were the income gaps among different groups narrowed? What problems are now left to be resolved? Next, in what areas should we step up our efforts? Thank you.
Ning Jizhe:
In 2021, as China's economy continued to recover, the employment situation was generally stable, the business efficiency of enterprises was improved, and people's basic living needs were effectively secured. All of these promoted the rebound of residents' income and narrowed the income gap. Details are mainly in the following aspects:
First, residents' income grew generally at the same pace as the economic growth. In 2021, the nationwide per capita disposable income of residents was 35,128 yuan, a nominal increase of 9.1% over that of the previous year. The real growth after deducting price factors was 8.1%, an average two-year growth of 5.1%, which was generally at the same pace as the growth of the economy.
Second, all types of incomes achieved overall growth. In 2021, driven by factors such as the deepening reforms to streamline administration and delegate power, improve regulation, and upgrade services and scaled efforts in helping businesses to get through challenges, the per capita net operating income of residents grew the fastest among all types of incomes, with a nominal increase of 11% over the previous year. This marks a change in the operating income of the previous year when COVID-19 took a higher toll on the growth of residents' net income. The policy of reducing burdens, stabilizing jobs, and expanding employment continued in the past year, and the targeted employment assistance for key groups was implemented, which boosted the income growth, with the per capita salary-based incomes of residents up 9.6% in nominal terms over the previous year, and the average monthly income of migrant workers up 8.8%. With the deepening of reforms in the capital market, market-based interest rate, and housing rental market, the per capita net property income of residents increased by 10.2% over the previous year. As the country secured people's livelihoods, with pension benefits being paid on time and in full, and efforts to provide temporary assistance being accelerated, residents' per capita net transfer income increased by 5.8% in nominal terms over the previous year, with an average two-year growth of 7.2%. All types of incomes rose across the board.
Third, the income gap between urban and rural residents continued to narrow. With the deepening of rural vitalization and a focus on agriculture, the income growth among rural residents was significantly faster than that of urban residents. In 2021, the nominal growth and real growth of the per capita disposable income of rural residents stood at 10.5% and 9.7%, respectively, both 2 percentage points faster than that of urban residents. Meanwhile, the per capita disposable income ratio of urban and rural residents was 2.5, down 0.06 percentage point from the previous year. The gap has continued to narrow over the years.
Fourth, the income of residents in the central and western regions grew at a faster pace. As the country implemented major regional strategies and coordinated development strategies, income growth of residents in the central and western regions has been faster than the average rate of the country. In 2021, the per capita disposable income of residents in the central region rose by 9.2%, and that of residents in the western region rose by 9.4%, 0.1 and 0.3 percentage point faster than the national average.
Fifth, the household income of middle- and low-income residents grew faster than that of the whole population. Speaking in terms of China's five income bands, in 2021, the per capita disposable income of people in the lower-income bracket (accounting for 20% of the total population) and in the lower-middle-income bracket (accounting for 20% of the total population) increased by 9.8% over the previous year. The growth rate of the per capita disposable income of the 40% least-wealthy residents was 0.7 percentage point faster than the national average. The per capita disposable income of people in the middle-income bracket (accounting for 20% of the total population) increased by 10.7%, 1.6 percentage points faster than the national average growth rate.
The income issues you are concerned about can be illustrated by specific figures. At the same time, we are soberly aware of the fact that the current downward pressure on China's economy is still relatively large, and the growth of residents' employment and income remains restricted. Though the income distribution gap between urban and rural areas, among regions, and different groups narrowed last year, the overall gap still exists. Next, we will focus on development as the top priority, pursue the people-centered development philosophy, advocate an employment-first strategy, and launch measures to promote income growth. We will also build a basic institution for the coordinated arrangement of primary distribution, redistribution, and third distribution; continue to equalize access to basic public services; gradually narrow the income distribution gap; and take solid steps to promote common prosperity. Thank you.
Chen Wenjun:
Thank you, Mr. Ning, and thanks to friends from the media. Today's press conference concludes here. Goodbye!
Translated and edited by Liu Jianing, Liu Qiang, Mi Xingang, Chen Xia, Yan Xiaoqing, Huang Shan, Xiang Bin, Li Huiru, Yang Xi, Zhang Rui, Zhang Tingting, Wang Wei, Xu Xiaoxuan, Qin Qi, Zhang Junmian, Wang Qian, Zhang Liying, Yuan Fang, Zhu Bochen, Wang Yiming, David Ball, Jay Birbeck, Drew Pittock and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
