Speaker:
Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS
Chairperson:
Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
July 15, 2022
Shou Xiaoli:
Ladies and gentlemen, good morning. Welcome to this press conference held by the SCIO. Today, we will continue the regular release of economic data. We have invited Mr. Fu Linghui, spokesperson of the NBS and director general of the Department of Comprehensive Statistics of the NBS, who will introduce China's economic performance in the first half of 2022 and answer your questions.
Now, I would like to give the floor to Mr. Fu for his introduction.
Fu Linghui:
Friends from the media, good morning. As per usual practice, I will first brief you on the main economic indicators and the performance of the national economy in the first half of 2022, and then answer your questions.
Strong measures have been adopted to counter the impact of unexpected factors, and the national economy has registered a stable recovery.
Since the beginning of this year, the increasingly complicated and challenging international environment, as well as multiple, sporadic domestic outbreaks of COVID-19, have led to extremely unusual economic development with a significant increase in adverse impacts. The economy in the second quarter was under noticeable downward pressure with serious impacts from unexpected factors. Faced with extreme complexities and difficulties, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments thoroughly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, effectively coordinated COVID-19 countermeasures with economic and social development, stepped up macro policy adjustments, and effectively implemented a package of policies and measures to boost stability. As a result, the resurgence of the pandemic was contained, the national economy registered a stable recovery, production and demand saw improving margins, market prices were generally stable, people's livelihoods were sufficiently protected with robust steps, the momentum of high-quality development was sustained and overall social stability was maintained.
1. The national economy realized positive growth in the second quarter despite downward pressure.
Major economic indicators plunged in April. Faced with new growing downward pressure, the CPC Central Committee and the State Council made sound decisions and took timely measures, implemented the policy measures of the Central Economic Work Conference and the Government Work Report early on, instead of deploying indiscriminate stimulus spending, rolled out a package of pro-stability policy measures according to the general guidelines and policy direction, and held a national teleconference to make arrangements on maintaining stable macroeconomic performance. The policies soon took effect. The decline of major economic indicators narrowed in May. The economy registered a stable recovery in June and achieved positive growth in the second quarter. According to preliminary estimates, China's gross domestic product (GDP) in the first half of the year was 56.26 trillion yuan, up by 2.5% year on year at constant prices. By industry, the value added of the primary industry was 2.91 trillion yuan, up by 5% year on year; the secondary industry 22.86 trillion yuan, up by 3.2%; and the tertiary industry 30.49 trillion yuan, up by 1.8%. Specifically, GDP for the second quarter was 29.25 trillion yuan, up by 0.4% year on year. By industry, in the second quarter, the value added of the primary industry was 1.82 trillion yuan, up by 4.4% year on year; the secondary industry 12.25 trillion yuan, up by 0.9%; and the tertiary industry 15.18 trillion yuan, down by 0.4%.
2. Summer grain witnessed a bumper harvest and animal husbandry grew steadily.
In the first half of this year, the value added of agriculture (crop farming) grew by 4.5% year on year. The overall output of summer grain was 147.39 million metric tons, 1.43 metric million metric tons higher than that of last year, an increase of 1%. The structure of crop farming continued to be optimized, as the sown area for cash crops like rapeseed increased. In the first half of this year, the output of pork, beef, mutton and poultry was 45.19 million metric tons, up by 5.3% year on year. Specifically, the outputs of pork, beef and mutton rose by 8.2%, 3.8% and 0.7%, respectively, and poultry was down by 0.8%; that of milk rose by 8.4% and eggs increased by 3.5%. In the second quarter, the output of pork, beef, mutton and poultry increased by 1.6% year on year, of which pork was up by 2.4%. By the end of the second quarter, the number of pigs registered in stock was 430.57 million, down by 1.9% year on year, among which 42.77 million were breeding sows; and 365.87 million pigs were slaughtered, up by 8.4%.
3. Industrial production steadily recovered and high-tech manufacturing enjoyed fast development.
In the first half of this year, the total value added of industrial enterprises above designated size grew by 3.4% year on year. In terms of sectors, the value added of mining increased by 9.5% year on year; that of manufacturing increased by 2.8%; and the production and supply of electricity, thermal power, gas and water increased by 3.9%. The value added of high-tech manufacturing went up by 9.6% year on year, 6.2 percentage points higher than that of industrial enterprises above designated size. In terms of ownership, the value added of state holding enterprises grew by 2.7% year on year, that of share-holding enterprises grew by 4.8%, that of enterprises funded by foreign investors and investors from Hong Kong, Macao and Taiwan fell by 2.1%, and that of private enterprises grew by 4%. In terms of products, the production of new-energy automobiles, solar cells and mobile communication base stations grew by 111.2%, 31.8% and 19.8% year on year, respectively.
In the second quarter, the total value added of industrial enterprises above designated size was up by 0.7% year on year. Specifically, that in April went down by 2.9% year on year; that in May shifted from negative to positive and was up by 0.7%; and that in June increased by 3.9%, 3.2 percentage points higher than that of the previous month, or up by 0.84% month on month. In June, the Manufacturing Purchasing Managers' Index stood at 50.2%, 0.6 percentage point higher than that of the previous month; and the Production and Operation Expectation Index was 55.2%, 1.3 percentage points higher than that of the previous month. In the first five months, the total profits made by industrial enterprises above designated size was 3.44 trillion yuan, up by 1% year on year.
4. The service sector gradually recovered and modern service industries witnessed good growth momentum.
In the first half of this year, the value added of services went up by 1.8% year on year. Of this total, that of information transmission, software and information technology services and that of financial intermediation grew by 9.2% and 5.5%, respectively. In the second quarter, the value added of services was down by 0.4% year on year. The Index of Services Production in April was down by 6.1% year on year; the decline in May narrowed to 5.1% and that in June shifted from decline to an increase of 1.3%. In the first five months, business revenue of service enterprises above designated size grew by 4.6% year on year, 0.4 percentage point higher than that of the first four months. In June, the Business Activity Index for services was 54.3%, 7.2 percentage points higher than that of the previous month. Specifically, the Business Activity Index for retail sales, railway transportation, road transportation, air transportation, postal services, monetary and financial services and capital market services stayed within the expansion rage of 55% and above. In terms of market expectation, the Business Activity Expectation Index for services was 61%, 5.8 percentage points higher than that of the previous month.
5. Market sales improved and retail sales of goods for basic living grew fast.
In the first half of this year, the total retail sales of consumer goods reached 21.04 trillion yuan, down by 0.7% year on year. Analyzed by area, the retail sales in urban areas reached 18.27 trillion yuan, down by 0.8%, and the retail sales in rural areas stood at 2.77 trillion yuan, down by 0.3%. Grouped by consumption patterns, the retail sales of goods reached 19.04 trillion yuan, up by 0.1%; and the income of catering was 2 trillion yuan, down by 7.7%. The consumption of goods for basic living grew steadily. The retail sales of grain, oil and food and that of beverages by enterprises above designated size grew by 9.9% and 8.2%, respectively. Online retail sales totaled 6.3 trillion yuan, up by 3.1%. Specifically, the online retail sales of physical goods were 5.45 trillion yuan, up by 5.6%, accounting for 25.9% of the total retail sales of consumer goods. In the second quarter, the total retail sales of consumer goods went down by 4.6% year on year. Specifically, that in April was down by 11.1% year on year; the decline in May narrowed to 6.7%; and that in June shifted from decline to an increase of 3.1% year on year, or up by 0.53% month on month.
