Press briefing on H1 economic data

CCTV:

Judging from the 7.5 percent GDP growth in the second quarter of this year, we can see economic growth has increased slightly. Do you think that means the Chinese economy has begun to recover from the bottom level? How do you see the current situation in the national economy and the future economic trends? Thank you.

Sheng Laiyun:

Thanks for your question. I would like to summarize the H1 national economy in three sentences. First, the economy in the first half year has been stable; second, the restructuring of the economy remains normal and is developing; third, structural adjustment and upgrading are making positive progress. The economy has been stable in five aspects: growth, employment, prices, agriculture and incomes.

During the first half year, GDP grew by 7.4 percent. In the second quarter, the GDP growth rate reached 7.5 percent, 0.1 percent higher than the first quarter. Urban employment increased by over 7 million, and the employment for migrant workers increased by 3.07 million, up 1.8 percent year-on-year.

The Consumer Price Index (CPI) grew by 2.3 percent in the first half of the year. From January to June, CPI was comparatively stable, between 1.8 percent and 2.5 percent. Agricultural production was in a good shape. Summer grain crops were harvested and increased 3.6 percent. Incomes for both urban and rural residents have increased rapidly. All these indexes illustrate that the economy is currently stable overall, and within a reasonable range.

The restructuring of the economy is stable and developing; this can be reflected in the following five aspects. First is the industrial structure. The added value of the tertiary industry made up 46.6 percent of China's gross domestic product, up 0.6 percent points year-on-year. Domestic demand continuously became the active force for economic growth. In the first half of the year, the contribution of domestic demand to GDP reached 102.9 percent. Second is the regional structure. The development between east, middle and west regions became more coordinated and harmonious. Third, the income gap between urban and rural residents was narrowed. Fourth, the overall growth rate of incomes was 2 percent points higher than the growth rate of fiscal revenue and 1 percent points higher than the growth rate of enterprise profit, respectively. That means residents incomes took up a higher proportion of the national income. Fifth is energy conservation and emissions reduction. In the first half of the year, the decline rate of energy consumption per unit GDP increased by 0.8 percent points year-on-year.

Structural adjustment and upgrading have made positive progress. As the economy remains stable, the economic structure experienced a range of profound changes. New industries, commercial activities and products have emerged and developed in a positive way.

In terms of industry, high technology and equipment manufacturing industries developed well and grew rapidly compared with traditional industries. As for consumption, online shopping and electronic commerce boomed. Through investigation and survey, we found that all enterprises which have a capacity for innovation and courage grew rapidly. And all products with proprietary intellectual property rights developed well. Based on this, we can see that the Chinese economy is gathering new momentum during its structural upgrading, which is now at a stalemate with traditional industrial power. A great break through is expected during the progress of structural adjustment and the upgrading of the Chinese economy.

In general, the national economy has grown steadily and is progressing. But we could not be short-sighted and over optimistic, because the current situation is still complex. The adjustment of traditional industries will require some time, therefore, the overall economy has to face a downward pressure. In this case, we should stand up and fight against the pressure, promote reform and innovation, adjust and upgrade the structures in order to keep the overall economy stable and developing well. Thank you!