In the first half of 2019, faced with complex environment both at home and abroad, under the strong leadership of the Central Committee of the Communist Party of China with comrade Xi Jinping as the core, all regions and departments strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, insisted on the general working guideline of making progress while maintaining stability, stuck to the new development philosophy, advanced the high-quality development, focused on the supply-side structural reform, deepened the reform and opening up, strengthened efforts on maintaining stability in areas like employment, financial sector, foreign trade, foreign investment, domestic investment, and market expectation. As a result, the national economy performed within the reasonable range, and sustained the momentum of progress in overall stability.
According to the preliminary estimates, the gross domestic product (GDP) of China was 45,093.3 billion yuan in the first half of 2019, a year-on-year increase of 6.3 percent at comparable prices. The year-on-year GDP growth for the first quarter was 6.4 percent, and 6.2 percent for the second quarter. The value added of the primary industry was 2,320.7 billion yuan, a year-on-year growth of 3.0 percent; the secondary industry was 17,998.4 billion yuan, a year-on-year growth of 5.8 percent; and the tertiary industry was 24,774.3 billion yuan, a year-on-year growth of 7.0 percent.
1. Agricultural Production Was Sound by Embracing Another Bumper Harvest for Summer Grain.
In the first half of 2019, the value added of crop farming grew by 3.9 percent year on year, 0.5 percentage point slower than the first quarter. The overall output of summer grain was 141.74 million tons, an increase of 2.93 million tons over last year, up by 2.1 percent, hitting the highest record as that of 2017. The structure of crop farming was further optimized, as planting area for cotton and soybean increased. In the first half, the output of eggs grew by 3.6 percent year on year, and that of milk grew by 1.7 percent. The output of pork, beef, mutton and poultry was 39.11 million tons, down by 2.1 percent, among which, the output of beef, mutton and poultry grew by 2.4 percent, 1.5 percent and 5.6 percent year on year respectively, while the output of pork went down by 5.5 percent.
2. Industrial Production Was Generally Stable with High-tech Manufacturing Accounting for Larger Share.
In the first half, the year-on-year growth rate of total value added of the industrial enterprises above the designated size was 6.0 percent, 0.5 percentage point slower than first quarter. In June, the year-on-year growth rate of total value added of the industrial enterprises above the designated size was 6.3 percent, 1.3 percentage points faster than that of May, up by 0.68 percent month on month. An analysis by types of ownership showed that the value added of the state holding enterprises went up by 5.0 percent year on year; that of share-holding enterprises up by 7.3 percent; and enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 1.4 percent. In terms of sectors, the value added of the mining grew by 3.5 percent year on year, the manufacturing grew by 6.4 percent and the production and supply of electricity, thermal power, gas and water grew by 7.3 percent. The value added of strategic emerging industries grew by 7.7 percent, 1.7 percentage points faster than that of the industrial enterprises above the designated size. The value added of high-tech manufacturing grew by 9.0 percent, 3.0 percentage points faster than that of the industrial enterprises above the designated size, accounting for 13.8 percent of the total value added of the industrial enterprises above the designated size, 0.8 percentage point higher than that of the same period last year. The output of new energy vehicles and solar cells grew by 34.6 percent and 20.1 percent year on year.
In the first five months of 2019, the total profits made by industrial enterprises above the designated size was 2,379.0 billion yuan, down by 2.3 percent year on year, 1.1 percentage points less than that of the first four months. The profits of industrial enterprises above the designated size in May grew by 1.1 percent, while that for April was down by 3.7 percent year on year. The profit rate of the business revenue of industrial enterprises above the designated size was 5.72 percent, 0.2 percentage point higher than that of the first four months in 2019.
3. Service Sector Grew Fast with Modern Service Industries Performing Well.
In the first half, the service sector maintained a good momentum. The value added of information transmission, software and information technology services, that of leasing and business services, that of transport, storage and postal services, and that of financial intermediation grew by 20.6 percent, 7.8 percent, 7.3 percent and 7.3 percent year on year respectively, or 13.6 percentage points, 0.8 percentage point, 0.3 percentage point and 0.3 percentage point faster than that of the tertiary industry. In the first half of 2019, the Index of Services Production increased by 7.3 percent year on year, 0.1 percentage point lower than that of the first quarter; specifically, that for June grew by 7.1 percent, 0.1 percentage point faster than that of May. In June, the Business Activity Index for services was 53.4 percent, continuing to stay above the 50-point mark separating growth from contraction. The Business Activities Expectation Index for services was 60.3 percent, staying at high level.
In the first five months, the business revenue of service enterprises above the designated size increased by 10.1 percent year on year, 0.3 percentage point faster than that of the first four months; specifically, the business revenue of strategic emerging services, high-tech services and technology services demonstrated fast growth, which increased by 12.5 percent, 12.3 percent and 12.0 percent respectively, or 2.4 percentage points, 2.2 percentage points and 1.9 percentage points faster than the growth of the service enterprises above the designated size.
4. Market Sales Demonstrated a Stable and Rising Trend with Higher Growth Rate and Share for Online Retail Sales.
In the first half of 2019, the total retail sales of consumer goods reached 19,521.0 billion yuan, up by 8.4 percent year on year, or 0.1 percentage point faster than that of the first quarter. In June, the total retail sales of consumer goods reached 3,387.8 billion yuan, a year-on-year growth of 9.8 percent, 1.2 percentage points faster than that of the previous month, or up by 0.96 percent month on month. In the first half, analyzed by different areas, the retail sales in urban areas reached 16,692.4 billion yuan, up by 8.3 percent year-on-year, and the retail sales in rural areas stood at 2,828.6 billion yuan, up by 9.1 percent. Grouped by consumption patterns, the income of catering was 2,127.9 billion yuan, up by 9.4 percent; and the retail sales of goods were 17,393.0 billion yuan, up by 8.3 percent. Upgraded consumer goods grew fast. The retail sales of enterprises above the designated size of cosmetics grew by 13.2 percent year on year, 4.8 percentage points faster than that of the total retail sales of consumer goods.
In the first half, the online retail sales reached 4,816.1 billion yuan, a year-on-year growth of 17.8 percent, 2.5 percentage points faster than the first quarter. Specifically, the online retail sales of physical goods were 3,816.5 billion yuan, up by 21.6 percent, accounting for 19.6 percent of the total retail sales of consumer goods, or 1.4 percentage points higher than that of the first quarter.
5. Investment Witnessed Steady Growth and the Investment in High-tech Industries Grew Fast.
In the first half, the investment in fixed assets (excluding rural households) reached 29,910.0 billion yuan, up by 5.8 percent year on year, 0.2 percentage point faster than that of the first five months, or 0.5 percentage point slower than that of the first quarter. Specifically, the private investment reached 18,028.9 billion yuan, up by 5.7 percent. The investment in the primary industry went down by 0.6 percent; the secondary industry went up by 2.9 percent, among which, that in manufacturing went up by 3.0 percent; the tertiary industry went up by 7.4 percent, among which, that in infrastructure was up by 4.1 percent. The investment in high-tech manufacturing industry