SCIO briefing on China's economic performance in 2020
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E-mail China.org.cn, January 20, 2021
Speaker:
Ning Jizhe, head of the National Bureau of Statistics
Chairperson:
Hu Kaihong, spokesperson for the State Council Information Office of China
Date:
Jan. 18, 2021
Hu Kaihong:
Ladies and gentlemen, good morning and welcome to this press conference. 2020 was an extraordinary year in which China's economic performance attracted wide attention at home and abroad. Today, we are delighted to invite Mr. Ning Jizhe, head of the National Bureau of Statistics (NBS), to introduce China's economic performance in 2020, and answer your questions.
Now, I would like to give the floor to Mr. Ning.
Ning Jizhe:
Friends from the media, good morning. Let me start by introducing China's economic performance in 2020. China's economy recovered steadily during the year, with major economic indicators surpassing expectations. In 2020, faced with a grave and complex situation both at home and abroad, and the huge impact of the epidemic in particular, under the strong leadership of the Central Committee of the Communist Party of China with Comrade Xi Jinping at its core, all regions and departments adhered to the general working guideline of making progress while maintaining stability, coordinated epidemic prevention and control work with socio-economic development, and took solid steps to ensure stability on the six fronts (employment, finance, foreign trade, foreign investment, domestic investment and market expectations) and security in the six areas (residential employment, people's livelihood, market entities, food and energy, stability of industrial and supply chains, and grassroots operations). As a result, the national economy recovered steadily, employment and living standards were ensured, and the main goals and tasks of socio-economic development were accomplished better than expected.
According to preliminary estimates, China's gross domestic product (GDP) was 101.6 trillion yuan in 2020, an increase of 2.3% over the previous year at comparable prices. In the first quarter, China's GDP fell by 6.8% year on year, while the remaining three quarters saw growth rates of 3.2%, 4.9% and 6.5%, respectively. The value-added of primary, secondary and tertiary industries were 7.78 trillion yuan, 38.43 trillion yuan, and 55.4 trillion yuan, respectively, with growth rates of 3%, 2.6%, and 2.1%.
First, grain output reached a record high and the production of hogs saw sustained and rapid recovery.
Last year's total grain output was 669.49 million tons, up 0.9% compared with the previous year, increasing by 5.65 million tons. Of this total, the output of summer grain was 142.86 million tons, up by 0.9%, and that of early rice was 27.29 million tons, up by 3.9%. The output of fall grain reached 499.34 million tons, up by 0.7%. By species, the output of rice was 211.86 million tons, up by 1.1%; wheat was 134.25 million tons, up by 0.5%; corn was 260.67 million tons, declining slightly compared with the previous year; and soybeans was 19.6 million tons, up by 8.3%.
The total output of pork, beef, mutton and poultry in 2020 was 76.39 million tons, down by 0.1% year on year. Of this, the output of beef was 6.72 million tons, up by 0.8%; mutton was 4.92 million tons, up by 1%; poultry was 23.61 million tons, up by 5.5%; eggs was 34.68 million tons, up by 4.8%; milk was 34.4 million tons, up by 7.5%; and pork was 41.13 million tons, down by 3.3%. At the end of 2020, the number of hogs and breeding sows in stock grew by 31% and 35.1%, respectively, over that at the end of 2019.
Second, industrial production continued to increase, and high-tech manufacturing and equipment manufacturing enjoyed faster growth.
The total value-added of industrial enterprises above designated size increased by 2.8% year on year. In terms of ownership, the value-added of state-holding enterprises grew by 2.2%, that of shareholding enterprises was up by 3%; enterprises funded by foreign investors and investors from Hong Kong, Macao and Taiwan was up by 2.4%; and private enterprises were up by 3.7%.
In terms of sectors, the value-added of the mining sector increased 0.5%, manufacturing grew by 3.4%, and that of producing and supplying electricity, thermal power, gas and water grew by 2%. The value-added of high-tech manufacturing and equipment manufacturing increased by 7.1% and 6.6%, respectively, over the previous year, or 4.3 percentage points and 3.8 percentage points, faster than that of industrial enterprises above designated size. Specifically, the production of industrial robots, new energy vehicles, integrated circuits and microcomputer equipment grew by 19.1%, 17.3%, 16.2% and 12.7% year on year, respectively.
In the fourth quarter, the total value-added of industrial enterprises above designated size grew by 7.1% year on year, which was 1.3 percentage points higher than that in the third quarter. In December, the total value-added of industrial enterprises above designated size grew by 7.3% year on year, up 0.3 percentage points compared with November, and an increase of 1.1% month on month. In 2020, the national industrial capacity utilization rate reached 74.5%. In the fourth quarter, the rate reached 78%, which was 1.3 percentage points higher than that in the third quarter.
In the first 11 months of 2020, the profits of industrial enterprises above designated size reached 5.74 trillion yuan, up by 2.4% year on year, 1.7 percentage points higher than that in the first 10 months. Specifically, the total profits made by industrial enterprises above designated size in November increased by 15.5% year on year, maintaining double-digit growth for six consecutive months.
Third, the service sector recovered gradually, with the modern service sector gaining momentum.
In 2020, the Index of Services Production remained the same as that of the previous year. The value-added of information transmission, software and information technology services as well as financial services grew by 16.9% and 7% year on year, respectively, or 14.8 percentage points and 4.9 percentage points higher than that of the tertiary industry.
In the fourth quarter, the Index of Services Production grew by 7.7% year on year, up 3.4 percentage points compared with the third quarter. In December, the index also rose by 7.7% year on year. In the first 11 months, the revenue of service enterprises above designated size grew by 1.6% year on year. Specifically, the revenue of information transmission, software and information technology services and that of scientific research and technology services grew by 13.5% and 9.9%, respectively, 11.9 percentage points and 8.3 percentage points higher than that of service enterprises above designated size.
In December, the Business Activity Index for services was 54.8%, staying above the expansion range. Specifically, the index for sectors including air transportation, telecommunications, broadcast, television and satellite transmission services, monetary and financial services and capital market services continued to stay within the high expansion range at 60% and above. From the perspective of market expectations, the Business Activity Expectation Index for services was 60.1%, staying within the high expansion range for six consecutive months.
Fourth, market sales recovered quickly, and the growth in the sales of upgraded consumer goods accelerated.
In 2020, the total retail sales of consumer goods reached 39.2 trillion yuan, down by 3.9% compared with the previous year. Specifically, the total retail sales of consumer goods by enterprises above designated size reached 14.33 trillion yuan, down by 1.9%. In terms of regions, retail sales in urban areas reached 33.91 trillion yuan, down by 4%; and retail sales in rural areas stood at 5.29 trillion yuan, down by 3.2%. Grouped by consumption patterns, catering revenue was 3.95 trillion yuan, down 16.6%; and retail sales of goods were 35.25 trillion yuan, down 2.3%.
The sales growth of upgraded consumer goods accelerated. In the fourth quarter, the retail sales of communication equipment, cosmetics, gold, silver and jewelry by enterprises above designated size grew by 26%, 21.2% and 17.3% respectively, or 16 percentage points, 7.1 percentage points and 5 percentage points higher than in the third quarter.
In the fourth quarter, the total retail sales of consumer goods grew by 4.6% year on year, which was 3.7 percentage points higher than in the third quarter. In December, the total retail sales of consumer goods grew by 4.6% year on year, or 1.24% month on month. In 2020, the national online retail sales reached 11.76 trillion yuan, up by 10.9% year on year. Specifically, the online retail sales of physical goods was 9.76 trillion yuan, up by 14.8%, accounting for 24.9% of total retail sales of consumer goods, or 4.2 percentage points higher than that of the previous year.
Fifth, investment in fixed assets rebounded steadily and investment in high-tech industries and social sectors grew fast.
In 2020, the investment in fixed assets (excluding rural households) reached 51.89 trillion yuan, up by 2.9% from last year. Specifically, investment in infrastructure was up by 0.9%, manufacturing down by 2.2%, and real estate development up by 7.0%. The floor space of commercial buildings sold reached 1.76 billion square meters, up by 2.6%, while the total sales of commercial buildings was 17.36 trillion yuan, up by 8.7%. The growth of investment in all three industries showed positive trends. Specifically, investment in the primary industry went up by 19.5%, 0.1% in the secondary industry, and 3.6% in the tertiary industry. Private investment was 28.93 trillion yuan, up by 1.0%, and investment in high-tech industries rose 10.6%, 7.7 percentage points higher than the total investment, with investment in high-tech manufacturing and services rising 11.5% and 9.1%, respectively. In terms of high-tech manufacturing, investment in pharmaceutical manufacturing and computers and office devices grew by 28.4% and 22.4%, respectively. In terms of high-tech services, investment in e-commerce services and information services also grew by 20.2% and 15.2%, respectively. The investment in social sectors rose by 11.9%, 9.0 percentage points higher than the total investment. Likewise, investment in the health and education industries went up by 29.9% and 12.3%, respectively. In December, investment in fixed assets grew by 2.32% month on month.
Sixth, foreign trade achieved positive growth and trade structure continued to optimize.
In 2020, the total imports and exports of goods reached 32.16 trillion yuan, an increase of 1.9% over last year. The exports amounted to 17.93 trillion yuan, up by 4%, while the imports were 14.22 trillion yuan, down by 0.7%. The trade balance achieved a 3.71 trillion yuan surplus. Exports of mechanical and electrical products grew by 6%, accounting for 59.4% of the total exports, which was 1.1 percentage points higher than that of last year. Imports and exports of general trade accounted for 59.9% of the total imports and exports, an increase of 0.9 percentage point compared to last year. Imports and exports by private enterprises grew by 11.1%, accounting for 46.6% of the total imports and exports, which was 3.9 percentage points higher than that of last year. In December, the total imports and exports of goods were 3.2 trillion yuan, up by 5.9% year on year. Specifically, the total exports reached 1.86 trillion yuan, up by 10.9%, and the total imports were 1.34 trillion yuan, down by 0.2%. The trade balance achieved 516.8 billion yuan in surplus.
Seventh, growth of consumer prices slowed and producer prices for industrial products dropped.
In 2020, consumer prices increased by 2.5%, lower than the 2.9% growth of the year before and also lower than the expected annual target of around 3.5%. To be more specific, prices went up by 2.3% in urban areas and up by 3% in rural areas. Grouped by commodity categories, prices for food, tobacco, and alcohol went up by 8.3%; clothing down by 0.2%; housing down by 0.4%; articles and services for daily use remained the same; transportation and communication down by 3.5%; education, culture, and recreation up by 1.3%; medical services and health care up by 1.8%; and other articles and services up by 4.3%. Breaking down food prices, grain prices rose 1.2%, the price of fresh vegetables grew 7.1%, and pork prices increased 49.7%. The core CPI, excluding the prices of food and energy, went up by 0.8%. In December, the consumer price went up by 0.2% year on year and up by 0.7% month on month. In 2020, producer prices for industrial products went down by 1.8% over last year, and in December, went down by 0.4% year on year and up by 1.1% month on month. The purchasing prices for industrial producers decreased by 2.3% over last year, and in December, maintained the same level year on year, or up by 1.5% month on month.
Eighth, employment was generally stable, and the surveyed unemployment rate in urban areas fell to the level observed last year.
In 2020, 11.86 million new jobs were created in urban areas, notably higher than the expected goal of over 9 million a 131.8% increase on the annual target. In December, the surveyed unemployment rate in urban areas was 5.2%, the same as that of last year. Specifically, the surveyed unemployment rate among those aged between 25 and 59 was 4.7%, also the same as that of 2019. In 2020, the average annual surveyed unemployment rate in urban areas stood at 5.6%, lower than the expected target of around 6%. The surveyed unemployment rate in 31 major cities in December was 5.1%. At the end of 2020, the registered unemployment rate in urban areas was 4.24%, lower than the expected target of around 5.5%. The number of rural migrant workers reached 285.6 million, 5.17 million less than that of last year, or down by 1.8%. Specifically, migrant workers working in their home provinces totaled 116.01 million, down by 0.4%; migrant workers working outside their home provinces totaled 169.59 million, down by 2.7%. The average monthly income for migrant workers was 4,072 yuan, up by 2.8% over last year.
Ninth, resident income grew at the same pace as the economy and the ratio of per capita disposable income between urban and rural residents continued to narrow.
In 2020, the nationwide per capita disposable income was 32,189 yuan, a nominal increase of 4.7% over that of last year and a real increase of 2.1% after deducting price factors, which generally grew at the same pace as the economy. In terms of those citizens with permanent residence, the per capita disposable income of urban households was 43,834 yuan, a nominal growth of 3.5% and a real growth of 1.2% after deducting price factors. The per capita disposable income of rural households was 17,131 yuan, a nominal growth of 6.9% and a real growth of 3.8% after deducting price factors. The per capita disposable income of urban households was 2.56 times that of rural households, 0.08 less than that of last year. The median of the nationwide per capita disposable income was 27,540 yuan, a nominal increase of 3.8% over that of last year. Taking the per capita disposable income for nationwide households as compared by income quintiles, that of the low-income group reached 7,869 yuan, the lower-middle-income group 16,443 yuan, the middle-income group 26,249 yuan, the upper-middle-income group 41,172 yuan, and the high-income group 80,294 yuan.
In 2020, the nationwide per capita consumer spending was 21,210 yuan, a nominal decline of 1.6% or a real decline of 4% after deducting price factors. Specifically, the per capita consumer spending of urban households was 27,007 yuan, a nominal decline of 3.8%, while the per capita consumer spending of rural households was 13,713 yuan, a nominal growth of 2.9%.
Generally speaking, the national economy in 2020 recovered steadily, notable results were achieved in stabilizing employment and ensuring people's basic needs, a decisive success was made in eradicating extreme poverty, the 13th Five-Year Plan came to a satisfactory conclusion, and the task of building a moderately prosperous society in all respects will soon be completed. However, the changing COVID-19 situation and external environment pose a multitude of uncertainties and the foundation for economic recovery is yet to be consolidated. At the next stage, we must take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, implement the spirit of the fifth plenary session of the 19th CPC Central Committee and the Central Economic Work Conference, adhere to the general working tone of making progress while maintaining stability, align ourselves with the new development phase, stick to the new development philosophy, foster a new development pattern, unswervingly deepen reform and opening up and innovation, consolidate and proliferate the gains made in epidemic prevention and control as well as economic and social development, take solid steps to ensure stability in six areas, fully carry out tasks to maintain security in six fronts, and implement macro policies in a science-based and precise manner to keep the economy performing within a reasonable range and to ensure a good start of the 14th Five-Year Plan period (2021-2025).
Hu Kaihong:
Thank you, Mr. Ning. The floor is now open to questions.
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