In the whole year of 2018, the gross domestic product (GDP) of China totaled 90,030.9 billion yuan (US$13,280.9 billion), a year-on-year increase of 6.6% at comparable prices, according to the preliminary estimates of the National Bureau of Statistics of China.
The total value of imports and exports was US$4,499.94 billion, up by 9.7% over that of last year, setting a new record by topping US$4T for the first time.
The consumer price went up by 2.1% over last year, lower than the projected annual target of around 3%. The total number of employed persons was 775.86 million, 1,788.47 of which were urban employed persons. The growth of income and expenditure of rural residents outpaced that of urban residents. The total population of mainland China was 1,395.38 million with a sex ratio of 104.64.
Specifically, the year-on-year growth was 6.8% for Q1, 6.7% for Q2 6.5% for Q3, and 6.4% for Q4. The value added of the primary industry was 6,473.4 billion yuan (US$954.92 billion), up by 3.5% year-on-year; that of the secondary industry was 36,600.1 billion yuan (US$5,399.06 billion), up by 5.8%; and that of the tertiary industry was 46,957.5 billion yuan (US$6,926.93), up by 7.6%.
1. Grain output maintained above 650 million tons for 4 consecutive years
In 2018, the output of grain crops was 657.89 million tons, 0.6% lesser over that of last year. However, it was still a harvest year on record, maintaining above 650.00 million tons for four consecutive years. Of the total, the output was 138.78 million tons for summer grain, 28.59 million tons for new rice, and 490.52 million tons for autumn grain.
The output of cotton was 6.10 million tons, up by 7.8% year-on-year. The sown area of quality rice, soybean, cotton, sugar crop, and Chinese herbal medicine plants all further increased while the cultivated area of corn continued to reduce.
The total output of pork, beef, mutton, and poultry was 85.17 million tons, a slight decrease of 0.3% year-on-year. Specifically, the production of pork was 54.04 million tons, down by 0.9%; beef 6.44 million tons, up by 1.5%; mutton 4.75 million tons, up by 0.8%; poultry 19.94 million tons, up by 0.6%.
There were 428.17 million pigs registered, a year-on-year decrease of 3.0%, and 693.82 million pigs slaughtered, a decrease of 1.2%.
2. New industries
In 2018, the real growth of the total value added of the industrial enterprises above the designated size in 2018 was 6.2%.
Sorted by types of ownership, the added value grew by 6.2% for the state holding enterprises, 6.6% for share-holding enterprises, and 4.8% for enterprises funded by foreign investors or investors from Hong Kong, Macao, and Taiwan, respectively while the value added of the collective enterprises decreased by 1.2%.
Regarding sectors, the added value increased by 2.3% for mining, 6.5% for manufacturing, and 9.9% for the production and supply of electricity, thermal power, gas, and water.
The value added of the high-tech manufacturing, the strategic emerging industry, and equipment construction increased by 11.7%, 8.9%, and 8.1% year-on-year, respectively, 5.5 percentage points, 2.7 percentage points, and 1.9 percentage points faster than that of the industrial enterprises above the designated size.
The output of new emerging industrial products rose fast. The growth of passenger trains, microwave terminals, new energy automobiles, biologically-based artificial fibers, smart TV sets, lithium-ion batteries, and integrated circuits grew by 183.0%, 104.5%, 40.1%, 23.5%, 18.7%, 12.9%, and 9.7%, respectively.
In December, the total value added of the industrial enterprises above the designated size went up by 5.7% year-on-year, 0.3 percentage point higher than that of last month, or up by 0.54% month-on-month.
From January to November, the profits made by industrial enterprises above the designated size stood at 6,116.9 billion yuan (US$902.33 billion), an increase of 11.8% year-on-year. The profit rate of the principal activities of the industrial enterprises above the designated size was 6.48%, 0.16 percentage point higher than that of the prior year period.
3. Index of Services Production increased by 7.7 % year-on-year
In 2018, the Index of Services Production increased by 7.7 % over that of last year. Specifically, that of information transmission, software, & information technology services and rental & business services grew by 37.0% and 10.1%, respectively.
In December, the Index of Services Production was up by 7.3% year-on-year, 0.1 percentage point higher than that of last month.
From January to November, the business revenue of service enterprises above the designated size increased by 11.5% year-on-year. Specifically, the business revenue of strategic emerging services, science and technology services and high-tech services grew by 14.9%, 15.0%, and 13.4% year-on-year, respectively. The operating profits of service enterprises above the designated size increased by 5.7%.
In December, the Business Activity Index for services was 52.3%. Specifically, the Business Activity Index for sectors like railway transportation, telecommunication, broadcast, television, & satellite transmission services, commercial financial services, insurance, and other financial services stayed within the expansion range of 60.0% and above.
From the perspective of market expectation, the Business Activities Expectation Index for services was 60.2%, 0.6 percentage point higher than that of last month.
4. Online retail sales increased by 23.9% year-on-year
In 2018, the total retail sales of consumer goods reached 38,098.7 billion yuan (US$5,620.13 billion), up by 9.0% year-on-year. Specifically, the retail sales of consumer goods by enterprises above the designated size was 14,531.1 billion yuan (US$2,143.55 billion), up by 5.7%.
In December, the growth of total retail sales of consumer goods was 8.2% year-on-year, or 0.55 percent month-on-month.
In 2018, online retail sales reached 9,006.5 billion yuan (US$1,328.59 billion), an increase of 23.9% compared with that of last year. Check out China’s retail market 2018 here.
5. Investment in manufacturing and private investment accelerated
In 2018, the investment in fixed assets (excluding rural households) was 63,563.6 billion yuan (US$9,376.58 billion), an increase of 5.9% year-on-year and 0.5 percentage point higher than that of the first three quarters.
Specifically, private investment reached 39,405.1 billion yuan (US$5,812.84 billion), up by 8.7%, 2.7 percentage points higher than that of last year. The investment grew by 12.9% in the primary industry, 1.1 percentage points higher than that of last year; 6.2% in the secondary industry, 3.0 percentage points higher, among which the investment in manufacturing grew by 9.5%, 4.7 percentage points higher; and 5.5% in the tertiary industry, among which the investment in infrastructure increased by 3.8%.
The investment in the high-tech manufacturing and equipment manufacturing went up by 16.1% and 11.1%, respectively, 6.6 percentage points and 1.6 percentage points higher than that of the investment in manufacturing.
In December, the investment in fixed assets grew by 0.42% month-on-month. The total investment in real estate development in 2018 was 12,026.4 billion yuan (US$1,774.07 billion), up by 9.5% over that of last year. The floor space of commercial buildings sold was 1,716.54 million square meters, up by 1.3%.
Specifically, the floor space of residential buildings sold was up by 2.2%. The total sales of commercial buildings were 14,997.3 billion yuan (US$2,212.33 billion), up by 12.2%, among which the sales of residential buildings were up by 14.7%.
6. The total value of imports and exports reached US$4T for the first time
The total value of imports and exports in 2018 was 30,505.0 billion yuan (US$4,499.94 billion), up by 9.7% over that of last year, setting a new record by topping 30 trillion yuan for the first time.
Of the total, the value of exports was 16,417.7 billion yuan (US$2,421.86 billion), up by 7.1%; the amount of imports was 14,087.4 billion yuan (US$2,078.10 billion), up by 12.9%. The trade balance was 2,330.3 billion yuan (US$343.75 billion) in surplus, down by 18.3% over that of last year.
The value of general trade accounted for 57.8% of the total amount of imports and exports, 1.4 percentage points higher than that of last year.
The export of electrical and mechanical products increased by 7.9%, accounting for 58.8% of the total value of exports, 0.4 percentage point higher than that of last year.
The imports and exports with the European Union, the United States, and ASEAN went up by 7.9%, 5.7%, and 11.2%, respectively. The imports and exports with the countries along the Belt and Road grew by 13.3%, 3.6 percentage points higher than the total imports and exports of goods of the year.
The export delivery value of the industrial enterprises above the designated size reached 12,393.2 billion yuan (US$1,828.18 billion), up by 8.5% over that of last year.
7. Consumer price rose 2.1% while producer prices for industrial goods were 2.8 percentage points lower
In 2018, the consumer price went up by 2.1% over last year, lower than the projected annual target of around 3%. Specifically, the price went up by 2.1% in both urban areas and rural areas.
Grouped by commodity categories, prices went up 1.9% for food, tobacco, and liquor; 1.2% for clothing; 2.4% for residence; 1.6% for household facilities, articles, and services; 1.7% for transportation and communications; 2.2% for education, culture, and recreation; 4.3% for health care and medical services; and 1.2% for miscellaneous goods and services.
Regarding food, tobacco and liquor prices, prices went up by 0.8% and 7.1% for grain and fresh vegetables, respectively, and declined by 8.1% for pork.
Core CPI excluding the price of food and energy went up by 1.9%, 0.3 percentage point lower than that of last year.
In December, the consumer price went up by 1.9% year-on-year and remained unchanged month-on-month.
In 2018, the producer prices for industrial products went up by 3.5% year-on-year, 2.8 percentage points lower than that of last year; in December, the producer prices for industrial products went up by 0.9% year-on-year, or down by 1.0% month-on-month.
In 2018, the purchasing prices for industrial producers were up by 4.1% over that of last year; and in December, it was up by 1.6% year-on-year or down by 0.9% month-on-month.
8. Total number of employed persons was 775.86 million
In 2018, the newly increased employed people in urban areas totaled 13.61 million, an increase of 100 thousand over that of last year, staying above 13 million for six years in a row, accomplishing 123.7% of the annual target.
In December, the surveyed unemployment rate in urban areas was 4.9%, 0.1 percentage point lower than that of the same month last year.
In 2018, the monthly urban surveyed unemployment rate stayed within the range of 4.8% to 5.1%, hitting the projected target of lower than 5.5%.
In December, the urban surveyed unemployment rate in 31 major cities was 4.7%, 0.2 percentage point lower than that of the same month last year. Specifically, the surveyed unemployment rate of the major labor force aged from 25 to 59 was 4.4%, the same as that of the previous month.
At the end of 2018, the total number of employed persons was 775.86 million, 1,788.47 of which were urban employed persons. The number of rural migrant workers reached 288.36 million, 1.84 million more than that of last year, up by 0.6%. Specifically, local migrant workers totaled 115.70 million, up by 0.9%; outside migrant workers totaled 172.66 million, up by 0.5%. The average monthly income of migrant workers was 3,721 yuan (US$548.90), a year-on-year growth of 6.8%.
9. The growth of income and expenditure of rural residents outpaced that of urban residents.
In 2018, the nationwide per capita disposable income of residents was 28,228 yuan (US$4,164.05), a nominal growth of 8.7% over that of last year, or a real increase of 6.5% after deducting price factors, higher than the growth rate of per capita GDP, and basically kept pace with economic growth.
Regarding permanent residence, the per capita disposable income of urban households was 39,251 yuan (US$5,790.11), nominal growth of 7.8% over that of last year, or a real growth of 5.6% after deducting price factors.
The per capita disposable income of rural households was 14,617 yuan (US$2,156.23), nominal growth of 8.8% year-on-year, or a real growth of 6.6% after deducting price factors. The per capita income of urban households was 2.69 times that of the rural households, 0.02 less than last year.
The median of the national per capita disposable income was 24,336 yuan (US$3,589.92), a nominal increase of 8.6%. Taking the per capita disposable income of nationwide households by income quintiles, that of the low-income group reached 6,440 yuan (US$949.99), the lower-middle-income group 14,361 yuan (US$2,118.46), the middle-income group 23,189 yuan (US$3,420.72), the upper-middle-income group 36,471 yuan (US$5,380.02), and the high-income group 70,640 yuan (US$10,420.5).
In 2018, the national per capita consumption expenditure of residents was 19,853 yuan (US$2,928.61), a nominal increase of 8.4%, 1.3 percentage points higher than that of last year, or a real growth of 6.2% after deducting price factors, 0.8 percentage point higher than that of the previous year.
Specifically, the per capita consumption expenditure of urban households was 26,112 yuan (US$3,851.91), nominal growth of 6.8%, 0.9 percentage point higher than that of last year. The per capita consumption expenditure of rural households was 12,124 yuan (US$1,788.47), nominal growth of 10.7%, and 2.6 percentage points higher than that of last year.
10. Consumption expenditure contributed 76.2% to GDP growth
As for cutting overcapacity, the annual tasks of cutting overcapacity in the industries of steel and coal were completed ahead of schedule. The national industrial capacity utilization rate reached 76.5%. Specifically, the capacity utilization rates of smelting and pressing of ferrous metals and the mining and washing of coal were 78.0% and 70.6%, respectively, 2.2 percentage points and 2.4 percentage points higher than that of last year.
As for deleveraging, the asset-liability ratio of enterprises declined. At the end of November, the asset-liability ratio of industrial enterprises above the designated size was 56.8%, 0.4 percentage point lower than that of the same period last year, among which the asset-liability ratio of state holding enterprises was 59.1%, 1.6 percentage points lower.
Regarding reducing inventory, by the end of 2018, the floor space of commercial buildings for sale was 524.14 million square meters, down by 11.0% over that at the end of 2017.
Regarding lowering costs, the cost of enterprises continued to drop. For the first eleven months, the cost for per-hundred-yuan turnover of principal activities of the industrial enterprises above the designated size was 84.19 yuan, 0.21 yuan less compared with that of the prior year period.
As for strengthening the weak areas, investment in weak areas grew rapidly. In 2018, the investment in environmental protection and treatment of environmental pollution and agriculture went up by 43.0% and 15.4%, respectively, or 37.1 percentage points and 9.5 percentage points higher than that of the total investment.
The economic structure continued to optimize. In 2018, the contribution of the value added of the tertiary industry to total GDP was 52.2%, 0.3 percentage point higher than that of last year, 11.5 percentage points higher than that of the secondary industry, contributing 59.7 % to GDP growth, 0.1 percentage point higher than that of the previous year.
Consumption as the primary driving force for economic growth was further strengthened with final consumption expenditure contributing 76.2% to GDP growth, 18.6 percentage points higher than that of last year, and 43.8 percentage points higher than the gross capital formation.
Household consumption was upgraded and improved with quality. The Engel’s Coefficient was 28.4%, 0.9 percentage point lower than that of last year.
In 2018, service consumption took up 44.2% of national per capita consumption expenditure of residents, 1.6 percentage points higher than that of 2017.
Green development was promoted steadily. The energy consumption per 10,000 yuan worth of GDP went down by 3.1% over last year, achieving the target of dropping by 3%.
The energy consumption structure continued to optimize. The share of consumption of clean energy such as natural gas, hydropower, nuclear power, and wind power in total energy consumption was 1.3 percentage points higher than that of last year.
China’s population growth and birth rate reached a shocking low in 2018