SCIO briefing on China's economic performance in first quarter of 2023
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E-mail China.org.cn, April 28, 2023
Speaker:
Mr. Fu Linghui, spokesperson 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:
April 18, 2023
Shou Xiaoli:
Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we are joined by Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS. Mr. Fu will brief you on China's economic performance in the first quarter of 2023, and then take your questions.
Next, I'll give the floor to Mr. Fu.
Fu Linghui:
Friends from the media, good morning. I'm very glad to attend today's press conference. As usual, I will start by briefing you on the economic performance in the first quarter of this year, and then take your questions.
In short, China's national economy got off to a generally stable start in the first quarter.
In the first quarter, faced with the grave and complex 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, made economic stability the top priority, pursued progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, accelerated efforts to foster a new development pattern, focused on promoting high-quality development, better balanced domestic and international imperatives, coordinated the COVID-19 prevention and control work with economic and social development, ensured both development and security, and gave priority to ensuring stable growth, employment and prices. As a result, a smooth transition in COVID-19 prevention and control to the new phase was secured in a relatively short time, production and demand registered a stable recovery, employment and prices were kept generally stable, residents' incomes continued to rise, market expectations saw a significant improvement, and the national economy got off to a good start.
According to preliminary estimates, the gross domestic product (GDP) in the first quarter reached 28,499.7 billion yuan, up by 4.5% year on year at constant prices, or up by 2.2% compared with the fourth quarter of 2022. By industry, the value added of the primary industry was 1,157.5 billion yuan, up by 3.7% year on year; that of the secondary industry was 10,794.7 billion yuan, up by 3.3%; and that of the tertiary industry was 16,547.5 billion yuan, up by 5.4%.
First, agricultural production was stable and animal husbandry grew steadily.
In the first quarter, the value added of agriculture (crop farming) witnessed a year-on-year increase of 3.6%. The winter wheat growth was generally normal and the spring farming and preparations were carried out in an orderly manner. According to the year-round planting intention survey, the planting area intended for wheat, rice and corn nationwide was generally stable. In the first quarter, the output of pork, beef, mutton and poultry was 24.56 million metric tons, up by 2.5% year on year. Of this total, the outputs of pork, beef, mutton and poultry rose by 1.9%, 5.1%, 5.0% and 3.2%, respectively. The output of milk was up by 8.5% and that of eggs up by 2.8%. At the end of the first quarter, the number of pigs registered in stock was 430.94 million, up by 2.0% year on year; and 198.99 million pigs were slaughtered, up by 1.7% in the first quarter.
Second, industrial production recovered gradually and the expectations of enterprises improved generally.
The total value added of industrial enterprises above designated size grew by 3.0% year on year in the first quarter, 0.3 percentage point higher than that in the fourth quarter of 2022. In terms of sectors, the value added of mining increased by 3.2%, that of manufacturing increased by 2.9%, and that of production and supply of electricity, thermal power, gas and water increased by 3.3%. The value added of equipment manufacturing increased by 4.3%, 2.5 percentage points higher than that in the first two months. Analysis by ownership types showed that the value added of state holding enterprises was up by 3.3%; that of share-holding enterprises was up by 4.3%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was down by 2.7%; and that of private enterprises was up by 2.0%. In terms of products, the production of solar cells and new-energy vehicles increased by 53.2% and 22.5%, respectively. In March, the value added of industrial enterprises above designated size grew by 3.9% year on year, 1.5 percentage points higher than that in the first two months, or up by 0.12% month on month. In March, the Manufacturing Purchasing Managers' Index (PMI) stood at 51.9%, and the Production and Operation Expectation Index was 55.5%. In the first two months, the total profit of industrial enterprises above designated size was 887.2 billion yuan, down by 22.9% year on year.
Third, the service sector rebounded markedly and contact-intensive services grew quickly.
In the first quarter, the value added of services rose by 5.4% year on year, 3.1 percentage points higher than that in the fourth quarter of 2022. Specifically, the value added of accommodation and catering, information transmission, software and information technology services, financial intermediation, leasing and business services and wholesale and retail grew by 13.6%, 11.2%, 6.9%, 6.0% and 5.5%, respectively. In March, the Index of Services Production increased by 9.2% year on year, 3.7 percentage points higher than that in the first two months. Specifically, the Index of Services Production of accommodation and catering, information transmission, software and information technology services and transport, storage and post increased by 29.9%, 12.0% and 11.9%, respectively, which were 18.3 percentage points, 2.7 percentage points and 7.7 percentage points higher than in the first two months. In the first two months, the business revenue of service enterprises above designated size grew by 3.4% year on year. In March, the Business Activity Index for Services stood at 56.9%, and the Business Activity Expectation Index was 63.2%. Among these, the Business Activity Index for industries including retail, railway transportation, road transportation, air transportation and leasing and business services were above 60.0%.
Fourth, market sales recovered quickly and upgraded goods increased largely.
In the first quarter, the total retail sales of consumer goods reached 11,492.2 billion yuan, up by 5.8% year on year, and that in the fourth quarter of 2022 was down by 2.7%. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 9,966.4 billion yuan, up by 5.7%, and that in rural areas was 1,525.8 billion yuan, up by 6.2%. Grouped by consumption patterns, the retail sales of goods were 10,278.6 billion yuan, up by 4.9%; and the income from catering was 1,213.6 billion yuan, up by 13.9%. Goods for basic living sold well, with the retail sales of clothes, shoes, hats and textiles as well as of grain, oil and food by enterprises above designated size increasing by 9.0% and 7.5%, respectively. Sales of upgraded goods went up markedly. The retail sales of gold, silver and jewelry and of books, newspaper and magazines by enterprises above designated size grew by 13.6% and 13.4%, respectively. Online retail sales reached 3,286.3 billion yuan, up by 8.6%. Specifically, the online retail sales of physical goods were 2,783.5 billion yuan, up by 7.3%, accounting for 24.2% of the total retail sales of consumer goods. In March, the total retail sales of consumer goods went up by 10.6% year on year, 7.1 percentage points higher than that in the first two months, or up by 0.15% month on month.
Fifth, investment in fixed assets increased steadily and investment in high-tech industries grew quickly.
In the first quarter, investment in fixed assets (excluding rural households) reached 10,728.2 billion yuan, up by 5.1% year on year, the same as that of the previous year. Specifically, investment in infrastructure grew by 8.8% year on year; that in manufacturing grew by 7.0%; and that in real estate development declined by 5.8%. The floor space of commercial buildings sold reached 299.46 million square meters, down by 1.8%; and the total sales of commercial buildings were 3,054.5 billion yuan, up by 4.1%. By industry, investment in the primary industry increased by 0.5%, that in the secondary industry grew by 8.7%, and that in the tertiary industry rose by 3.6%. Private investment went up by 0.6%. Investment in high-tech industries grew by 16.0%, of which investment in high-tech manufacturing and high-tech services grew by 15.2% and 17.8%, respectively. In terms of high-tech manufacturing, investment in manufacturing of electronic and communication equipment as well as in manufacturing of medical equipment, measuring instruments and meters grew by 20.7% and 19.9%, respectively. In terms of high-tech services, investment in e-commerce services and services for transformation of scientific and technological achievements grew by 51.5% and 51.3%, respectively. Investment in social sectors grew by 8.3%. Specifically, investment in health and education grew by 21.6% and 6.2%, respectively. In March, investment in fixed assets (excluding rural households) declined by 0.25% month on month.
Sixth, imports and exports of goods kept growing and trade structure continued to be optimized.
In the first quarter, the total value of imports and exports of goods was 9,887.7 billion yuan, an increase of 4.8% year on year. The total value of exports was 5,648.4 billion yuan, up by 8.4%. The total value of imports was 4,239.3 billion yuan, up by 0.2%. The trade balance was 1,409.0 billion yuan in surplus. The imports and exports of general trade increased by 7.9%, accounting for 65.3% of the total value of imports and exports, 1.9 percentage points higher than that of the same period last year. Imports and exports by private enterprises grew by 14.4%, accounting for 52.4% of the total value of imports and exports. In March, the total value of imports and exports was 3,709.4 billion yuan, up by 15.5% year on year. The total value of exports was 2,155.2 billion yuan, up by 23.4%; and that of imports was 1,554.2 billion yuan, up by 6.1%.
Seventh, consumer prices rose mildly, and producer prices for industrial products dropped year on year.
In the first quarter, the consumer price index (CPI) rose by 1.3% year on year. The prices for food, tobacco, and alcohol went up by 2.9% year on year. Clothing prices went up by 0.7%. Housing prices went down by 0.2%. Articles and services for daily use went up by 1.2%. Transportation and communication prices went up by 0.1%. Education, culture, and recreation prices went up by 1.7%. Medical services and healthcare prices went up by 0.9%. Other articles and services prices went up by 2.7%. In terms of food prices, fresh fruit prices went up by 11%, pork prices went up by 8.5%, grain prices went up by 2.5%, and fresh vegetable prices went down by 2.9%. The core CPI, excluding food and energy prices, grew by 0.8% year on year. In March, the country's CPI went up by 0.7% year on year and down by 0.3% month on month.
In the first quarter, the producer prices for industrial products went down by 1.6% year on year. Specifically, the prices in March dropped by 2.5% year on year, and maintained the same level month on month. In the first quarter, the purchasing prices for industrial producers went down by 0.8% year on year. Specifically, in March, the prices dropped by 1.8% year on year, and maintained the same level month on month.
Eighth, employment was generally stable, and the surveyed unemployment rate in urban areas declined.
In the first quarter, the urban surveyed unemployment rate averaged 5.5%, down by 0.1 percentage point compared with the fourth quarter of last year. In March, the surveyed unemployment rate in urban areas was 5.3%, down by 0.3 percentage point compared with 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 5.6%, of which the rate of population with non-local agricultural household registration stood at 5.3%. Specifically, the surveyed unemployment rates of the population aged from 16 to 24 and from 25 to 59 were 19.6% and 4.3%, respectively. Among the population aged 25 to 59, surveyed unemployment rates of those with junior secondary school education or below, with senior secondary school education, with junior college education, or with university education or above were 4.8%, 4.8%, 4%, and 3.1%, respectively. The urban surveyed unemployment rate in 31 major cities was 5.5%, 0.2 percentage point lower than that of the previous month. Employees of enterprises worked 48.7 hours per week on average. By the end of the first quarter, the number of rural migrant workers totaled 181.95 million.
Ninth, residents' incomes increased steadily, and rural residents' incomes grew faster than those of urban residents.
In the first quarter, the country's per capita disposable income was 10,870 yuan, a nominal growth of 5.1% year on year, which was 0.1 percentage point faster than that of the previous year; real growth was 3.8% after deducting price factors. In terms of permanent residence, the per capita disposable income of urban residents was 14,388 yuan, a nominal growth of 4% year on year and a real growth of 2.7%, while the per capita disposable income of rural residents was 6,131 yuan, a nominal growth of 6.1% year on year and a real growth of 4.8%. In terms of income sources, the country's per capita salary income, net business income, net property income, and net income from transfers grew by 5%, 5.8%, 4.1%, and 5.1% in nominal terms, respectively. The median nationwide per capita disposable income of residents was 8,895 yuan, with a nominal growth of 4.6% year on year.
Generally speaking, in the first quarter, the national economy showed a steady recovery and made a positive start. This was due to multiple policies and measures aimed at stabilizing growth, employment, and prices that took effect early on, exhibiting positive effects as COVID-19 prevention and control measures shifted to their new phase in a rapid and steady way. However, it's important to note that the international environment is still complex and volatile and that inadequate domestic demand remains prominent, meaning that the foundation for economic recovery is not yet solid. To address these challenges, we must take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, fully implement the guiding principles of the 20th CPC National Congress as well as the first and second plenary sessions of the 20th CPC Central Committee, act in line with the plans and arrangements made at the Central Economic Work Conference and the “two sessions,” make economic stability the top agenda, and pursue progress while ensuring stability. We must fully and faithfully apply the new development philosophy on all fronts, accelerate efforts to create a new pattern of development, strive to pursue high-quality development, implement macro policies in a scientific and targeted manner, and unleash the potential of domestic demand through a variety of means and channels. We must intensify efforts to deepen reforms, promote high-standard opening up, advance the overall improvement of economic performance continuously, and endeavor to achieve the effective enhancement of quality and reasonable growth so as to ensure a good start for building a modern socialist country in all respects.
Thank you.
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