Agricultural Production Achieved Stable Growth and Summer Grain Continued to Get Harvests

In the first half of 2013, faced with the complicated and volatile economic environment at home and abroad, the Central Party Committee and the State Council have committed to the general tone of making progress while ensuring the stability, centered on improving the quality and efficiency of economic growth, continued to carry out the proactive fiscal policy and prudent monetary policy, created conditions for economic restructuring through reforms and restructuring in turn unleashed potential for economic growth. As a result, the overall national economy realized steady development and grew at a moderate pace.

According to the preliminary estimation, the gross domestic product (GDP) of China in the first half of this year was 24,800.9 billion yuan, a year-on-year increase of 7.6 percent calculated at comparable prices. Specifically, the growth of the first quarter was 7.7 percent, and 7.5 percent for the second quarter. The value added of the primary industry was 1,862.2 billion yuan, up by 3.0 percent; that of the secondary industry was 11,703.7 billion yuan, up by 7.6 percent; and that of the tertiary industry was 11,235.0 billion yuan, up by 8.3 percent. The gross domestic product of the second quarter of 2013 went up by 1.7 percent on a quarterly basis.

1. Agricultural Production Achieved Stable Growth and Summer Grain Continued to Get Harvests.

The total output of summer grain was 131.89 million tons, an increase of 1.96 million tons, up by 1.5 percent year-on-year. The output of summer rapeseed was 13.48 million tons, an increase of 450 thousand tons, up by 3.4 percent. In the first half of this year, the total output of pork, beef, mutton and poultry reached 39.16 million tons, a year-on-year decrease of 0.2 percent. The output of pork reached 26.14 million tons, up by 1.0 percent. The number of pigs in stock was 452.50 million, down by 0.6 percent, while the number of slaughtered pigs was 342.11 million, an increase of 1.1 percent.

2. Industrial Production Grew Steadily with Enterprises Profits Continued to Increase.

In the first half, the total value added (calculated at comparable price) of the industrial enterprises above designated size was up by 9.3 percent year-on-year, a decrease of 0.2 percentage point than that in the first quarter. An analysis on different types of enterprises showed that the value added growth of the state-owned and state holding enterprises went up by 5.2 percent; collective enterprises 5.0 percent; share-holding enterprises 10.9 percent; and 7.4 percent growth for enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan provinces. The year-on-year growth of heavy industry was 9.6 percent, and 8.4 percent for the light industry. All the 41 industrial divisions registered year-on-year growth. In terms of different areas, the growth in eastern, central and western regions was 8.7 percent, 10.0 percent and 10.5 percent respectively. Out of the 464 kinds of industrial products, 325 of them registered year-on-year increase in output. Of this total, electricity went up by 4.4 percent, crude steel up by 7.4 percent, rolled steel up by 10.2 percent, cement up by 9.7 percent, plain glass up by 10.8 percent, ten kinds of nonferrous metals up by 10.0 percent, coke up by 7.4 percent, sulfuric acid (converted into 100 percent) up by 7.3 percent, caustic soda (converted into 100 percent) up by 4.7 percent, chemical fiber up by 5.8 percent, ethylene up by 4.6 percent, micro computer equipment up by 6.4 percent. The output of integrated circuits was up by 9.8 percent, and motor vehicles up by 15.2 percent with the output of cars grew by 16.1 percent. In the first half, the sales ratio of industrial enterprises above designated size was 97.5 percent, maintaining the same level in the same period of last year. The export delivery value of the industrial enterprises above designated size reached 5,342.6 billion yuan, up by 4.8 percent. In June, the total value added of the industrial enterprises above designated size was up by 8.9 percent year-on-year, or 0.68 percent month-on-month.

In the first five months of this year, the profits made by industrial enterprises above designated size stood at 2,081.2 billion yuan, up by 12.3 percent year-on-year, an increase of 0.2 percentage point than that in the first quarter, and it was down by 2.4 percent in the same period in 2012. Of this total, the profit from primary activities was 2,327.2 billion yuan, up by 11.4 percent. Among the 41 industrial divisions, 33 divisions registered year-on-year increase in profits from primary activities, 6 divisions witnessed reduction in profits, one division turned into profits from losses, and one division suffered less losses. In the first five months, the costs for per-hundred-yuan turnover of primary activities of the industrial enterprises above designated size reached 85.41 yuan. The profit rates of industrial enterprise above designated size from all activities and their primary activities are 5.35 percent and 5.99 percent respectively.

3. Investment in Fixed Assets Enjoyed Relatively Fast Growth while That in the Tertiary Industry Grew Faster Compared with the Whole.

In the first half, the investment in fixed assets (excluding rural households) was 18,131.8 billion yuan, a year-on-year growth of 20.1 percent (a real growth of 20.1 percent after deducting price factors), which was 0.8 percentage point lower than that in the first quarter, or 0.3 percentage point lower than that in the same period of 2012. Of this total, that in the state-owned and state holding enterprises reached 5,734.2 billion yuan, an increase of 17.5 percent; private investment reached 11,558.4 billion yuan, up by 23.4 percent. In term of different areas, the growth in eastern, central and western regions was 18.7 percent, 23.6 percent and 22.7 percent respectively. The investment in the primary industry reached 388.4 billion yuan, up by 33.5 percent year-on-year; that in the secondary industry was 7,805.2 billion yuan, up by 15.6 percent; and that in the tertiary industry was 9,938.2 billion yuan, up by 23.5 percent. Of the investment in the secondary industry, that in industry reached 7,657.2 billion yuan, up by 16.2 percent. Of this total, the investment in mining was 545.4 billion yuan, up by 8.8 percent; manufacturing 6,325.7 billion yuan, up by 17.1 percent; and the production and supply of electricity, heat, gas and water 786.1 billion yuan, up by 14.5 percent. The investment in infrastructural facilities (excluding the production and supply of electricity, heat, gas and water) was 2,726.2 billion yuan, up by 25.3 percent. The funds in place for investment in the first half were 21,740.1 billion yuan, up by 20.1 percent. Specifically, the government budgetary funds went up by 18.9 percent, domestic loans up by 13.0 percent, self-raising funds up by 18.6 percent, foreign investment down by 8.4 percent. The total planned investment in newly-started projects was 17,327.7 billion yuan, a year-on-year increase of 15.1 percent. The number of projects started in the first half was 199,834, an increase of 25,169 year-on-year. In June, the investment in fixed assets (excluding rural households) went up by 1.51 percent month-on-month.

In the first half, the total investment in real estate development was 3,682.8 billion yuan, a year-on-year growth of 20.3 percent (a real growth of 20.3 percent after deducting price factors), which was 0.1 percentage point higher than that in the first quarter, or 3.7 percentage points higher than that in the same period of 2012. Of this total, the investment in residential buildings went up by 20.8 percent, which was 0.3 percentage point lower than that in the first quarter, or 8.8 percentage points higher than that in the same period last year. Floor space of houses newly started in the first half was 959.01 million square meters, up by 3.8 percent. Specifically, the floor space of residential buildings started in the first half increased by 2.9 percent. The floor space of commercial buildings sold reached 514.33 million square meters, up by 28.7 percent, which was 8.4 percentage points lower than that in the first quarter, while it was down by 10.0 percent in the same period of last year. Of this total, that of residential buildings went up by 30.4 percent. The sales of commercial buildings in the first half were 3,337.6 billion yuan, up by 43.2 percent, or 18.1 percentage points lower than that in the first quarter, while it was down by 5.2 percent in the same period of last year. Of this total, that of residential buildings was up by 46.0 percent. In the first half of this year, the land space purchased by real estate development enterprises was 157.21 million square meters, down by 10.4 percent, the decline of which was narrowed by 11.6 percentage points as compared with that in the first quarter and 9.5 percentage points as compared with that in the same period of last year. At the end of June, the floor space of commercial buildings for sale was 437.31 million square meters, up by 39.2 percent, which was 1.7 percentage points lower than that in the first quarter, or 6.1 percentage points higher than that in the same period of 2012. In the first half, the actual funds for real estate development enterprises reached 5,722.5 billion yuan, up by 32.1 percent, or 2.8 percentage points higher than that in the first quarter and 26.4 percentage points higher than that in the same period of last year. Specifically, the growth of domestic loans was up by 30.4 percent, self-raising funds up by 16.3 percent and foreign investment up by 15.9 percent.

4. Market Sales Kept Steady Growth While That of the Household Appliances Realized Comparatively Fast Growth.

In the first half, the total retail sales of consumer goods reached 11,076.4 billion yuan, an increase of 12.7 percent (a real growth of 11.4 percent after deducting price factors), or 0.3 percentage point higher than that in the first quarter and 1.7 percentage points lower than that same period of last year. Specifically, the retail sales of the enterprises (units) above designated size stood at 5,525.1 billion yuan, up by 10.5 percent. Analyzed by different areas, the retail sales in urban areas reached 9,578.9 billion yuan, up by 12.5 percent, and that in rural areas stood at 1,497.5 billion yuan, up by 14.3 percent. Grouped by consumption patterns, the total income of catering industry was 1,179.5 billion yuan, up by 8.7 percent year-on-year, or 0.2 percentage point higher than that in the first quarter and 4.5 percentage points lower than that same period of last year; and retail sales of goods was 9,896.9 billion yuan, up by 13.2 percent, or 0.3 percentage point higher than that in the first quarter and 1.3 percentage points lower than that same period of last year. In particular, the retail sales of enterprises (units) above designated size reached 5,150.8 billion yuan, up by 11.7 percent. Specifically, the sales of motor vehicles rose by 8.8 percent, or 0.3 percentage point lower than that in the same period of 2012; furniture grew up by 21.3 percent, or 3.8 percentage points lower; and household appliances and audio-video equipment went up by 15.3 percent, or 12.0 percentage points higher. In June, the total retail sales of consumer goods rose by 13.3 percent year-on-year (a real growth of 11.7 percent after deducting price factors), and the month-on-month growth was1.26 percent.

5. The Growth Rates of Imports and Exports Declined with Larger Decline in Exports.

The total value of imports and exports in the first half was 1,997.7 billion US dollars, a year-on-year growth of 8.6 percent, which was 4.9 percentage points lower than that in the first quarter. The total value of exports was 1,052.8 billion US dollars, up by 10.4 percent, a drop of 8.0 percentage points; and that of imports was 944.9 billion US dollars, up by 6.7 percent or 1.9 percentage points lower. The trade surplus was 107.95 billion US dollars. Of the total value of imports and exports, that from general trade was 1,035.9 billion US dollars, up by 6.3 percent; and that from processing trade was 649.7 billion US dollars, up by 1.1 percent. Among the value of exports, that from general trade was 506.3 billion US dollars, up by 10.0 percent; and that from processing trade was 411.3 billion US dollars, down by 0.9 percent. Among the value of imports, that from general trade was 529.6 billion US dollars, up by 3.0 percent; and that from processing trade was 238.4 billion US dollars, up by 4.6 percent. In June, the total value of imports and exports was 321.5 billion US dollars, down by 2.0 percent year-on-year. The total value of exports was 174.3 billion US dollars, down by 3.1 percent; and that of imports was 147.2 billion US dollars, down by 0.7 percent.

6. The Growth of Consumer Price was Generally Stable while That of Producer Price Continued to Decline.

In the first half, the consumer price went up by 2.4 percent year-on-year, maintaining the same level as that in the first quarter and 0.9 percentage point lower than that in the same period of 2012. Specifically, the price went up by 2.4 percent in cities and 2.5 percent in rural areas. Grouped by commodity categories, prices for food rose by 4.0 percent; tobacco, liquor and articles rose by 0.8 percent; clothing up by 2.4 percent; household facilities, articles and maintenance services up by 1.6 percent; health care and personal articles grew by 1.6 percent; transportation and communication went down by 0.6 percent; recreation, education, culture articles and services grew by 1.4 percent; and housing went up by 2.9 percent. In terms of food prices, that for grain grew up by 5.1 percent, oil or fat up by 3.3 percent, pork down by 3.7 percent and fresh vegetables up by 2.3 percent. In June, the consumer prices went up by 2.7 percent year-on-year, and the month-on-month growth remained unchanged (the rate of increase or decline is 0). In the first half, the producer prices for industrial products went down by 2.2 percent, the decline of which was 0.5 percentage point more than that in the first quarter and 1.6 percentage points more than that in the same period of last year. In June, the price dropped by 2.7 percent year-on-year or down by 0.6 percent month-on-month. In the first half, the purchasing price for industrial producers was down by 2.4 percent year-on-year. In June, the price was down by 2.6 percent year-on-year and 0.5 percent month-on-month.

7. Urban and Rural Residents’ Income Rose Steadily with a Higher Growth for Rural Residents.

In the first half, the per capita total income of urban households was 14,913 yuan. Specifically, the per capita disposable income of urban households was 13,649 yuan, a nominal growth of 9.1 percent, or a real growth of 6.5 percent after deducting price factors, which was 0.2 percentage point lower than that in the first quarter. Of the per capita total income of urban households, the nominal year-on-year growth of wage income was 8.7 percent; net income from business operation 8.5 percent; property income 14.0 percent and transferred income 9.4 percent. The per capita cash income of rural households was 4,817 yuan, up by 11.9 percent, or 9.2 percent in real terms, which was 0.1 percentage point lower than that in the first quarter. Specifically, the growth of wage income was 16.8 percent; household operation income 7.6 percent; property income 22.6 percent; and 14.4 percent from transferred income. The median of per capita disposable income of urban households was 11,938 yuan, up by 9.2 percent; while that of per capita cash income of rural households was 4,171 yuan, up by 13.0 percent year-on-year. The number of rural migrant workers at the end of June was 171.11 million, which was 4.44 million more than that in the previous year, or up by 2.7 percent. The monthly income of migrant workers was 2,477 yuan, up by 12.6 percent.

8. Money Supply Enjoyed Relatively High Growth with More Newly Increased Loans Year-on-year.

By the end of June, the balance of broad money (M2) was 105.45 trillion yuan, a year-on-year growth of 14.0 percent, which was 1.8 percentage points lower than that in the previous month or 0.2 percentage point higher than that at the end of the previous year; the balance of narrow money (M1) was 31.36 trillion yuan, up by 9.1 percent, which was 2.2 percentage points lower on a monthly basis or 2.6 percentage points higher than that at the end of 2012; the balance of cash in circulation (M0) was 5.42 trillion yuan, up by 9.9 percent, a drop of 0.9 percentage point compared with that in the previous month or 2.2 percentage points higher than that at the end of the previous year. The amount of outstanding loans of all financial institutions at the end of June was 68.08 trillion yuan, while the amount of outstanding deposits was 100.91 trillion yuan. In the first half, the newly increased loans reached 5.08 trillion yuan, an increase of 221.7 billion yuan; the newly increased deposits were 9.09 trillion yuan, an increase of 1.71 trillion yuan year-on-year.

As a whole, the first half of 2013 witnessed a generally stable growth of overall economy with major indicators falling within the rational range of annual expectation. However, we are still faced with grim and complicated economic situations. In the next phase, in accordance with the decisions and arrangements made by the central government, we should adhere to the main theme of scientific development and the mainline of transforming economic development mode, keep taking actions to maintain a stabilized but progressing and quality economic growth, coordinate the efforts of stabilizing economic growth, promoting economic restructuring and pushing forward reforms, maintain the continuity and stability of macro-economic policy, improve the relevance and forward-looking of macro-control, bring the market mechanism into full play, trigger the internal vigor of market and economy, and endeavor to promote a sustainable and sound development of national economy for an upgraded version.

Notes:

1. The growth rate of gross domestic product, value added of industrial enterprises above designated size and its sub-items are real growth by using comparable prices. The growth rates of other indicators are nominal growth by using current prices unless otherwise specified.

2. According to the auto-revision function of the seasonal adjustment model, quarterly GDP of 2012, and the month-on-month changes of the value added of industrial enterprises above designated size, investment in fixed assets (excluding rural households), and total retail sales of consumer goods from June 2012 to June 2013 have been revised. The revised figures and figures for June as well as GDP of the second quarter of 2013 are as follows:

The quarter-on-quarter growth of GDP in each quarter of 2012 and in the first two quarters of 2013 was 1.5 percent, 2.1 percent, 2.0 percent, 1.9 percent, 1.6 percent and 1.7 percent respectively.

Month-on-Month Changes

3. From 2012, the NBS implemented the new Industrial Classification for National Economic Activities (GB/T4754-2011). For more detailed information, please refer to: http://www.stats.gov.cn/tjbz

4. The eastern areas include 11 provinces and municipalities: Beijing, Tianjin, Hebei, Liaoning, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong and Hainan; central areas cover 8 provinces: Shanxi, Jilin, Heilongjiang, Anhui, Jiangxi, Henan, Hubei and Hunan; western area include 12 provinces, autonomous regions and municipality: Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia and Xinjiang.

5. The median of per capita income of urban and rural households refer to the per capita income of household lied in the middle of all surveyed households which are ranked from low to high based on per capital income level.

6. Statistics of imports and exports comes from the General Administration of Customs; and data about money supply and deposits and loans comes from the People’s Bank of China.

In case of any differences between English translation and the original Chinese text, the Chinese edition shall prevail.