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Speaker:

Mr. Fu Linghui, spokesman of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS

Chairperson:

Ms. Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 17, 2023

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to today's press conference held by the State Council Information Office (SCIO). This is a regular briefing on economic data. We are delighted to be joined by Mr. Fu Linghui, spokesman of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS, to brief you on the national economic performance of the first half of 2023, and to take your questions.

Now, I'll give the floor to Mr. Fu for an introduction.

Fu Linghui:

Thank you, Ms. Shou. I'm very glad to attend today's press conference. I'll first brief you on the main economic data of the first half of this year and then take your questions.

In the first half of this year, the Chinese economy has shown encouraging recovery momentum. In the first half of this year, faced with a complex and grave international environment as well as arduous tasks to advance reform and development, and ensure stability at home, 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 strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, adhered to the general working guideline of making progress while maintaining stability, fully and faithfully applied the new development philosophy on all fronts, accelerated the efforts to foster a new development pattern, focused on promoting high-quality development, better balanced domestic and international imperatives, coordinated the work of COVID-19 prevention and control with economic and social development, ensured both development and security, and gave priority to ensuring stable growth, employment and prices. As a result, market demand gradually recovered, production supply continued to increase, employment and prices were generally stable, and residents' income grew steadily. The national economy showed a good momentum of recovery.

According to preliminary estimates, the gross domestic product (GDP) in the first half of the year reached 59,303.4 billion yuan, up by 5.5% year on year at constant price, 1.0 percentage point faster than that in the first quarter of 2023. By industry, the value added of the primary industry was 3,041.6 billion yuan, up by 3.7% year on year; that of the secondary industry was 23,068.2 billion yuan, up by 4.3%; and that of the tertiary industry was 33,193.7 billion yuan, up by 6.4%. By quarter, GDP grew by 4.5% year on year in the first quarter and 6.3% in the second quarter. GDP in the second quarter was up by 0.8% quarter on quarter. 

1. Agricultural production was stable and animal husbandry grew steadily.

In the first half of 2023, the value added of agriculture (crop farming) witnessed a year-on-year increase of 3.3%. The summer grain had another harvest. The total output of summer grain was 146.13 million metric tons, 1.274 million metric tons less than that of the previous year, or down by 0.9%, but still the second highest amount in history. In the first half of the year, the output of pork, beef, mutton and poultry was 46.82 million metric tons, up by 3.6% year on year. Of this total, the outputs of pork, beef, mutton and poultry increased by 3.2%, 4.5%, 5.1% and 4.3%, respectively. The output of milk was up by 7.5% and that of eggs grew by 2.9%. At the end of the second quarter, the number of pigs registered in stock was 435.17 million, up by 1.1% year on year; and in the first half of the year, 375.48 million pigs were slaughtered, up by 2.6%.

2. Industrial production recovered gradually and equipment manufacturing grew quickly.

The total value added of industrial enterprises above designated size grew by 3.8% year on year in the first half year, or 0.8 percentage point faster than that in the first quarter. In terms of sectors, the value added of mining increased by 1.7% year on year, that of manufacturing increased by 4.2%, and that of the production and supply of electricity, thermal power, gas and water increased by 4.1%. The value added of equipment manufacturing increased by 6.5%, 2.7 percentage points faster than that of the industrial enterprises above designated size. Analysis by types of ownership showed that the value added of state holding enterprises rose by 4.4% year on year; that of share-holding enterprises was up by 4.4%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 0.8%; and that of private enterprises was up by 1.9%. In terms of products, the production of solar cells, new-energy automobiles and industrial control computers and systems increased by 54.5%, 35.0% and 34.1%, respectively. In June, the value added of industrial enterprises above designated size grew by 4.4% year on year, or up by 0.68% month on month. In June, the Manufacturing Purchasing Managers' Index stood at 49.0%, and the Production and Operation Expectation Index was 53.4%.

3. The service sector grew quickly and services involving contacts and gatherings improved significantly.

In the first half of the year, the value added of services went up by 6.4% year on year, 1.0 percentage point faster than that in the first quarter. Specifically, the value added of accommodation and catering, information transmission, software and information technology services, leasing and business services, financial intermediation, and wholesale and retail grew by 15.5%, 12.9%, 10.1%, 7.3% and 6.6%, respectively. In June, the Index of Services Production increased by 6.8% year on year. Specifically, the Index of Services Production of accommodation and catering, information transmission, software and information technology services, and leasing and business services went up by 20.0%, 15.4% and 9.3%, respectively. In the first five months, the business revenue of service enterprises above designated size grew by 8.5% year on year. In June, the Business Activity Index for Services stood at 52.8%, and the Business Activity Expectation Index was 60.3%. Among these, the Business Activity Index for industries like air transportation, express mail services, telecommunication, broadcast, television and satellite transmission services, monetary and financial services, and insurance were within the high expansion range of 60.0% and above.

4. Market sales registered good momentum of growth and sales of upgraded goods accelerated.

In the first half of the year, the total retail sales of consumer goods reached 22,758.8 billion yuan, up by 8.2% year on year, 2.4 percentage points faster than that of the first quarter. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 19,753.2 billion yuan, up by 8.1% year on year, and that in rural areas was 3,005.6 billion yuan, up by 8.4%. Grouped by consumption patterns, the retail sales of goods were 20,325.9 billion yuan, up by 6.8%; and the income of catering was 2,432.9 billion yuan, up by 21.4%. Goods for basic living enjoyed stable growth, with the retail sales of clothes, shoes, hats and textiles and of grain, oil and food by enterprises above designated size up by 12.8% and 4.8%, respectively. The sales of upgraded goods grew quickly. The retail sales of gold, silver and jewelry, of sports and recreation goods, and of cosmetics by enterprises above designated size went up by 17.5%, 10.5%, and 8.6%, respectively. Online retail sales reached 7,162.1 billion yuan, up by 13.1% year on year. Specifically, the online retail sales of physical goods were 6,062.3 billion yuan, up by 10.8%, accounting for 26.6% of the total retail sales of consumer goods. In June, the total retail sales of consumer goods increased by 3.1% year on year, or up by 0.23% month on month.

5. Investment in fixed assets continued to increase and investment in high-tech industries grew quickly.

In the first half of the year, the investment in fixed assets (excluding rural households) reached 24,311.3 billion yuan, up by 3.8% year on year. Specifically, the investment in infrastructure grew by 7.2%; that in manufacturing grew by 6.0%; and that in real estate development fell by 7.9%. The floor space of commercial buildings sold reached 595.15 million square meters, down by 5.3%; and the total sales of commercial buildings were 6,309.2 billion yuan, up by 1.1%. By industry, investment in the primary industry went up by 0.1%, that in the secondary industry was up by 8.9%, and that in the tertiary industry was up by 1.6%. Private investment dropped by 0.2%. Investment in high-tech industries grew by 12.5%, of which investment in high-tech manufacturing and high-tech services grew by 11.8% and 13.9%, respectively. In terms of high-tech manufacturing, investment in manufacturing of medical equipment, measuring instruments and meters and manufacturing of electronic and communication equipment grew by 16.8% and 14.2%, respectively. In terms of high-tech services, investment in professional technical services and in services for transformation of scientific and technological achievements grew by 51.6% and 46.3%, respectively. In June, investment in fixed assets (excluding rural households) grew by 0.39% month on month.

6. Imports and exports of goods continued to grow and the trade structure continued to be optimized.

In the first half of the year, the total value of imports and exports of goods was 20,101.6 billion yuan, an increase of 2.1% year on year. The total value of exports was 11,458.8 billion yuan, up by 3.7%. The total value of imports was 8,642.9 billion yuan, down by 0.1%. The trade balance was 2,815.9 billion yuan in surplus. The imports and exports of general trade increased by 4.0%, accounting for 65.5% of the total value of imports and exports, 1.2 percentage points higher than that of the same period in the previous year. The imports and exports by private enterprises grew by 8.9%, accounting for 52.7% of the total value of imports and exports, 3.3 percentage points higher than that of the same period in the previous year. The imports and exports with countries along the Belt and Road grew by 9.8%. In June, the total value of imports and exports was 3,488.3 billion yuan, down by 6.0% year on year. The total value of exports was 1,989.8 billion yuan, down by 8.3%; and that of imports was 1,498.5 billion yuan, down by 2.6%. 

7. Consumer price rose year on year and producer prices for industrial products dropped year on year.

In the first half of the year, the consumer price index (CPI) rose by 0.7% year on year. Grouped by commodity categories, prices for food, tobacco and alcohol went up by 2.1%. Clothing prices increased by 0.8%. Housing prices dropped by 0.2%. Prices for articles and services for daily use rose by 0.5%. Transportation and communication prices fell by 2.3%. Prices for education, culture and recreation grew by 1.7%. Prices for medical services and health care went up by 1.0%. Prices for other articles and services increased by 2.9%. In terms of food, tobacco and alcohol prices, fresh fruit prices went up by 7.9%, pork prices increased by 3.2%, grain prices rose by 1.6%, and fresh vegetable prices dropped by 2.7%. The core CPI excluding food and energy prices grew by 0.7% year on year. In June, the country's CPI maintained the same level year on year and dropped by 0.2% month on month.

In the first half of the year, the producer prices for industrial products went down by 3.1% year on year. Specifically, the prices in June dropped by 5.4% year on year, or down by 0.8% month on month. In the first half of the year, the purchasing prices for industrial producers went down by 3.0% year on year. Specifically in June, the prices dropped by 6.5% year on year, or down by 1.1% month on month.

8. Employment was generally stable and the surveyed unemployment rate in urban areas declined.

In the first half of the year, the urban surveyed unemployment rate averaged 5.3%, down by 0.2 percentage point over that of the first quarter. In June, the surveyed unemployment rate in urban areas was 5.2%, the same as that of the previous month. The surveyed unemployment rate of population with local household registration was 5.1% and that of population with non-local household registration was 5.3%, of which, the rate of population with non-local agricultural household registration stood at 4.9%. Specifically, the surveyed unemployment rates of population aged 16-24 and 25-59 were 21.3% and 4.1%, respectively. Among the population aged 25-59, the surveyed unemployment rates of the population with junior secondary school education or below, with senior secondary school education, with junior college education, and with university education or above were 4.4%, 4.4%, 3.9% and 3.2%, respectively. The urban surveyed unemployment rate in 31 major cities was 5.5%, the same as the previous month. The employees of enterprises worked 48.7 hours per week on average. By the end of the second quarter, the number of rural migrant workers totaled 187.05 million, up by 3.2% year on year.

9. Residents' incomes increased steadily and the incomes of rural residents grew faster than that of urban residents.

In the first half of the year, the nationwide per capita disposable income of residents was 19,672 yuan, a nominal growth of 6.5% year on year, 1.4 percentage points faster than that of the first quarter; the real growth was 5.8% after deducting price factors, 2.0 percentage points faster. In terms of permanent residence, the per capita disposable income of urban households was 26,357 yuan, a nominal growth of 5.4% year on year and a real growth of 4.7%; the per capita disposable income of rural households was 10,551 yuan, a nominal growth of 7.8% year on year and a real growth of 7.2%. In terms of income sources, the nationwide per capita salary income, net business income, net property income and net income from transfers grew by 6.8%, 7.0%, 4.7% and 6.1% in nominal terms, respectively. The median nationwide per capita disposable income of residents was 16,393 yuan, with a nominal growth of 5.4% year on year.

Generally speaking, in the first half of the year, as economic and social development has fully returned to normal and macro policies have come into effect, the national economy showed a good momentum of recovery and high-quality development was advanced steadily. However, we must be aware that the international political and economic situation is intricate and complicated, and the foundation for sustained economy recovery at home is not yet solid. In the next stage, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, adhere to the general principle of pursuing progress while maintaining stability, fully and faithfully apply the new development philosophy on all fronts, focus on the top task of high-quality development and strategic task of creating a new pattern of development, comprehensively deepen reform and opening up, accelerate the modernization of the industrial system, promote smooth economic flow, and make more efforts to change the growth model, improve the economic structure and gather new growth momentum, so as to effectively enhance the quality and reasonable growth of quantity in the economy. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu. The floor is now open for questions. Please identify the media organization you work for before asking your questions.