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New Growth Drivers Push Chinese Economy to Improve in Stability and Transform and Upgrade

Submit Time:08-05-2018 | Zoom In | Zoom Out

Author: | Source:State Statistics Bureau

Abstract:

As the economic development of China enters the new normal, new growth drivers with new industries, new business forms and new pattern as the core keep on enhancing, becoming the important forces to promote China’s steady economic growth and transformation and upgrading of economic structure, effectively supplementing the effect and impact of the weakening traditional growth drivers on economy, and ensuring a stable situation in national economy with improvement.  

I. The new growth drivers pushed improvement of economy in stability.  

Since the 18th National Congress of the CPC, the Chinese economy has maintained steady growth, with comprehensive national strength substantially increasing. From 2013 to 2017, the GDP grew at an average annual rate of 7.1%, with the economic operation remaining within a reasonable range. In 2017, the GDP reached RMB 82.7 trillion yuan, accounting for about 15% of the world economy.  

The steady growth of the economy was benefited from the sustained impetus of new drivers. With the action of a series of policies and measures of the state, the popular entrepreneurship and innovation has become a hot surge, economic activities of new industries, new business forms and new patterns (three-new economy) kept on emerging, and the new growth drivers are strengthening continually. According to preliminary estimation, the added value of three-new economy in 2016 was about 11.3719 trillion yuan, accounting for 15.3% of GDP, and when calculated at the present value, the growth rate of the three-new economy added value was 11.8%, 3.9 percentage points higher than the present GDP growth rate, 0.5 percentage points higher than that of the previous year. Although the proportion of the three-new economy added value is still low at present, it shows a booming momentum, thus making up the effect of the weakening traditional growth drivers to a certain extent, and playing an important role in the steady operation of economy.  

The new growth drivers pushed improvement of economy in stability. In industries, the high-tech and strategic emerging industries have maintained fairly rapid growth, pushing the industries to develop towards the high end of the value chain. From 2013 to 2017, the annual average growth rate of the added values of high-tech industries was 11.7%, 5.1 percentage points higher than that of all industries. From 2015 to 2017, the annual average growth rate of the added values of strategic emerging industries was 10.5%, 4.4 percentage points higher than that of all industries in the same period. The strategic emerging service industry has grown rapidly, with service quality and standard upgrading continually. From 2015 to 2017, the annual average growth rate of the operation income of strategic emerging service industry was 14.8%, 3.5 percentage points higher than the annual average growth rate of operation income of service industry above the designated scale in the same period. The online transactions saw explosive growth, stimulating the vigor and consumption demand on the domestic market. From 2015 to 2017, the annual average growth rate of the value of online retail sales exceeded 30%, about 20 percentage points higher than the annual average growth rate of total retail sales of consumer goods. In 2016, the total e-commerce transaction volume reached 26.1 trillion yuan, 2.5 times that of 2013; the non-bank Internet paid 54.3 trillion yuan of total transaction volume in the whole year, a year-on-year increase of 124.3%, with over 99% as domestic transactions, and the amount of cross-border transactions was 186.6 billion yuan.  

II. New growth drivers promote optimization of industrial structure 

With the advancing of supply-side structural reform, the industrial structure has been gradually optimized and upgraded, and the service industry now constitutes half of the national economy. In 2017, the added value of the tertiary industry accounted for 51.6% of GDP, 6.3 percentage points higher than that of 2012. In terms of contribution to economic growth, from 2013 to 2017, the annual average contribution of the three industries to economic growth was 4.6%, 42.6% and 52.8% respectively, and the contribution from the tertiary industry was 10.2 percentage points higher than that of the secondary industry.  

The manufacturing industry has accelerated transition and upgrading. As the new growth drivers keep on growing in strength, the traditional manufacturing industry is accelerating transformation, and the production capacity of high energy-consuming sectors is being cut down in an orderly way. From 2013 to 2017, the annual average growth rate of the six major high energy-consuming sectors was 6.4%, 0.2 percentage points lower than that of all industries. In 2017, the industrial production capacity utilization rate reached 77.0%, 1.2 percentage points higher than that of 2013.  

The structure of the service industry has been continually optimized. With the all-round penetration of the Internet technology, the service sector integrated with Internet has kept on growing. The e-commerce has driven the post and express delivery sector to grow at high speed, and the sharing economy has driven the new type development in a number of service sectors such as transportation, accommodation, finance, catering, logistics, education, medical service and infrastructure, therefore, the new growth drivers mainly come from the service industry. In 2016, the added value of “three-new” service industry accounted for 52% of the total added value of “three-new” economy. With this effect, the proportions of associated service industries have kept on increasing. In 2017, the added value of the wholesale and retail, postal services, finance, information transmission software and information technology services, leasing and business services, residential services, repair and other services respectively accounted for 9.4%, 0.5%, 7.9%, 3.3%, 2.7% and 1.8% of GDP, 0.2, 0.3, 1.4, 1.1, 0.6 and 0.3 percentage points higher than that of 2012.  

III. New growth drivers promote upgrading of demand structure 

In recent years, the fundamental role of China's consumption has been significantly enhanced. In the contribution rate of the three major demands to economic growth, from 2013 to 2017, the annual average contribution rate from the final consumption expenditure was 56.2%, that from the gross capital formation 43.8%, and that from net export of goods and services was almost zero in the recent five years.  

The new growth drivers promote the upgrading of consumption on both aspects of supply and use. On one hand, new drivers are driving the creation of new consumer supplies. In 2016, the proportion of the added value of new type living-oriented service activities in the “three-new” economy accounted for about 7.2% of the added value of all “three-new” economy, an obvious increase from that of 2015; and on the other hand, new growth drivers are continually improving the quality of consumption by residents. O2O services such as online retail, video live broadcast, online education, Internet medical treatment, meal ordering and laundry can satisfy consumers' needs just at home. The new service patterns, such as online car-hiring, sharing bicycles, sharing accommodation and mobile payment, have also made people's travel, touring and leisure activities more enjoyable and convenient. Cultural entertainment, education and training, fitness and health care consumption have increased, and service-based consumption has become hot. In 2016, the proportion of education and cultural entertainment, medical service and health care expenditure increased by 0.7 and 1.3 percentage points respectively compared with 2012 in the per capita consumption expenditure of residents in the whole country. This also made the contribution of final consumer spending in 2016 increase by 11.6 percentage points from that of 2012.  

While the consumption structure is upgrading, the investment structure is also continuously optimizing. Investments in high-tech manufacturing, equipment manufacturing, and weak infrastructure links, especially in areas related to people's livelihood, are growing rapidly. From 2013 to 2016, the annual average growth rate of investment was 14.8% in high-tech manufacturing industry, 13.4% in equipment manufacturing industry, 29.7% in ecological protection and environment harnessing sector, and 19.2% in the education field, all much higher than the growth rate of the total investment in fixed assets for the whole society.  


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