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Monday, July 16, 2018, 12:05
China's GDP grew 6.8% in first half of 2018
By Xinhua
Monday, July 16, 2018, 12:05 By Xinhua

Shoppers take escalator at the capital city's popular shopping mall in Beijing, China, July 15, 2018. The National Bureau of Statistics says China's gross domestic product expanded 6.8 percent year on year in the first half of 2018. (ANDY WONG / AP)

BEIJING – China's gross domestic product expanded 6.8 percent year on year in the first half of 2018 to about 41.90 trillion yuan (US$6.27 trillion), data from the National Bureau of Statistics (NBS) showed Monday. 

The pace was well above the government's annual growth target of around 6.5 percent, extending a steady expansion. 

China will stick to the supply-side structural reform and coordinate efforts to ensure stable and sound economic performance

Mao Shengyong, 

Spokesperson, National Bureau of Statistics 

In the second quarter, China's GDP rose solidly by 6.7 percent year on year, slightly lower than the 6.8 percent in the previous quarter but representing the 12th straight quarter that the GDP growth rate has stayed within the range of 6.7 to 6.9 percent, according to NBS data. 

The service sector expanded 7.6 percent year on year in the first half, outpacing a 3.2-percent increase in primary industry and 6.1 percent in secondary industry, according to the NBS. 

Consumption continued to play a bigger role in driving growth, with final consumption contributing to 78.5 percent of the economic expansion in January-June, up from 77.8 percent in the first quarter and 58.8 percent last year. 

NBS spokesperson Mao Shengyong said at a press conference that the Chinese economy has been running soundly in the first six months, offering "a good start" for the country's pursuit for high-quality development with further restructuring progress and improved economic quality and efficiency. 

However, noting increasing external uncertainties and the fact that China is still going through a critical stage in structural adjustment, Mao said the country would stick to the supply-side structural reform and coordinate efforts to ensure stable and sound economic performance. 

China's economy expanded 6.9 percent in 2017, picking up the pace for the first time in seven years. 

This Oct 1, 2016 photo shows a container terminal in Lianyungang, east China's Jiangsu province. (WANG CHUN / XINHUA)

INDUSTRIAL OUTPUT

China's value-added industrial output expanded 6.7 percent year on year in the first half. The growth rate was 0.2 percentage points lower than that recorded in the first five months, according to the NBS. 

Ownership analysis showed that industrial output of state-holding enterprises and share-holding firms both went up 6.1 percent in June. Meanwhile, industrial output of enterprises funded by overseas investors increased 5.4 percent. 

Manufacturing output expanded 6 percent year on year in June, while mining output growth rose 2.7 percent year on year. 

READ MORE: China economy entering new era with high quality growth

In terms of regional growth, in June, east China reported industrial added value growth of 4.1 percent. Central China posted a growth of 7.5 percent, with 7 percent growth for west China, and 5.9 for northeast of China. 

"In the first half year, China's economy posted stable performance with good momentum for growth," said Mao.

PROPERTY INVESTMENT

Property investment posted slower growth in the first half of this year, partly due to strengthened regulation on real estate markets, according to the statistics authority. 

Investment in property development increased 9.7 percent year on year in the first six months, from 10.2-percent expansion in the January-May period.

The growth pace marked the slowdown for a third straight month from the peak of the 10.4-percent rise in the first quarter. 

NBS data showed investment in the real estate sector amounted to 5.55 trillion yuan (around US$830 billion), with 70.2 percent of the total pumped into residential projects, which also slowed down mildly. 

ALSO READ: China's economy on steady track despite softened momentum

The government has continued its tough stance on property sector regulation this year, curbing home market speculation and cleaning up the illegal financing channels of property developers. Seen as a major prop to the Chinese economy, the once-overheated sector has thus far remained largely stable amid efforts to help defuse financial risks. 

Developers built about 7.1 billion square meters of housing in the January-June period, up 2.5 percent year on year, of which more than two-thirds were residential buildings. 

Women take souvenir photos with soft toys on display at an arcade games shop in Beijing, China, July 15, 2018. (ANDY WONG / AP)

RETAIL SALES GROWTH 

According to the NBS, retail sales of consumer goods grew 9 percent year on year in June. The growth accelerated from the 8.5-percent rise seen in May.

In the first half of the year, retail sales expanded 9.4 percent year on year to reach 18 trillion yuan (about US$2.7 trillion), compared with a 9.8-percent growth in the first quarter. 

Retail sales in rural areas increased 10.5 percent year on year in the first half, continuing to outpace the growth in urban regions, where sales rose 9.2 percent, according to the NBS. 

The catering sector reported a 9.9-percent year-on-year rise in revenue, while sales of other consumer products increased by 9.3 percent. 

Online spending remained robust, with sales surging 30.1 percent to reach 4.1 trillion yuan in the first half. 

During the period, final consumption expenditure contributed to 78.5 percent of China's economic growth, up from 77.8 percent in the first quarter.

RESIDENT INCOME

China's average per capita disposable income grew 6.6 percent year on year in real terms to 14,063 yuan (about US$2,107 U.S. dollars) in the first half. According to the NBS, the growth was calculated after taking into consideration the effects of inflation. 

The nominal growth in resident income was 8.7 percent in the first six months. 

During the January-June period, the real growth of per capita disposable income in rural areas was faster than that in urban regions, indicating narrowing of the urban-rural income gap, according to NBS data. 

The average per capita disposable income for rural residents reached 7,142 yuan from January to June, up 6.8 percent after deducting price factors, while that of urban residents increased 5.8 percent in real terms to 19,770 yuan.

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