Maintaining a Steady Economy
In 2017, the economy maintained robust development momentum, characterised by stable growth, optimised structure, improved livelihood and better quality.
In 2017, Beijing Municipality adhered to a principle of “making progress while maintaining stability” to focus on the city’s orientation and deepen reform on the supply side. The economy has maintained robust momentum characterised by stable growth, optimised structure, improved livelihood and better quality.
According to statistics, the municipality’s gross domestic product (GDP) totalled 2.80 trillion yuan in 2017, an increase of 6.7 percent over 2016 based on comparable prices. The growth rate was 0.1 percentage lower than the previous year. The primary industry, secondary industry and the tertiary industry generated added values of 12.05 billion yuan, 531.06 billion yuan and 2.26 trillion yuan respectively, down 6.2 percent, up 4.6 percent and up 7.3 percent compared to the previous year.
The new economy realised an added value of 908.56 billion yuan, up 9.8 percent based on comparable prices, accounting for 32.4 percent of the municipality’s economy. Added value for high-tech industry and strategic emerging industry were 638.73 billion yuan and 453.13 billion yuan, up 9.5 percent and 10.6 percent (the two overlap).
Steady Development for Eco and Urban Agriculture
In 2017, Beijing continued to adjust the structure of agriculture. Traditional agriculture continued to shrink and the grain-sown area decreased by 23.5 percent over 2016. The number of slaughtered hogs, milk output, and the output of poultry and eggs dropped by 12.1 percent, 18.1 percent and 14.4 percent, respectively.
Agriculture’s function to improve ecology was strengthened and urban and modern agriculture achieved steady growth. The output value of the municipality’s forestry industry increased by 12.7 percent over the previous year. Total income of the municipality’s agricultural sightseeing gardens was 2.99 billion yuan, up 6.9 percent over previous year. Agricultural exhibitions and agricultural-related celebrations and activities received 4.51 million tourists, generating an income of 250 million yuan.
Stable Growth Momentum, Higher Efficiency in Secondary Industry
Throughout the year, the municipality’s total added value of industrial enterprises above a designated size rose by 5.6 percent compared with the previous year based on comparable prices, and the growth rate was 0.5 percentage higher than the previous year. The added value of high-tech manufacturing industry and emerging strategic industry (the two overlap) rose by 13.6 percent and 12.1 percent, respectively. Of the key sectors, the added value for pharmaceutical manufacturing increased by
18.8 percent, that for computers, communications and other electronic equipment manufacturing grew by 10.8 percent, and that for electricity, heating production and supply industry rose by 9.3 percent, while automotive manufacturing decreased by 2.9 percent.
From January to November, total profit created by enterprises above a designated size was 175.38 billion yuan, up 28.9 percent year-on-year and the growth rate was 23.2 percentage higher than the same period of the previous year; overall labour productivity was 397,000 yuan per person, an increase of 32,000 yuan per person over the same period of the previous year.
Mild Trend for Tertiary Industry
In 2017, the added value of the municipality’s tertiary industry increased by 7.3 percent over the previous year and the growth rate was 0.3 percent higher than the previous year. Of this, the financial, science and technology services, information services and other competitive sectors accounted for 53.3 percent of the municipality’s total economic growth. The added value for the financial sector was 463.45 billion yuan, up 7 percent; the added value for scientific research and technology services increased to 285.92 billion yuan, up 10.7 percent and the added value for information transmission, software and information technology services increased to 316.9 billion yuan, up 12.6 percent.
In the distribution field, the added value for the transport, postal and warehousing industry increased by 12.1 percent; in the public service industry, the added value for water conservancy, environment and public facility management increased by 12.1 percent, and education grew by 8.3 percent.
Growth in Investment
In 2017, Beijing’s total investment in fixed assets was 894.81 billion yuan, an increase of 5.7 percent over the previous year. Investments in infrastructure, such as transportation, energy, water, greening and other projects, amounted to 298.42 billion yuan, up 24.4 percent, accounting for 33.4 percent of the total investment in fixed assets. The investment in real estate development was 374.59 billion yuan, down 7.4 percent.
Looking at the industries separately, primary industry completed investment of 9.59 billion yuan, down 3.9 percent; secondary industry completed investment of 89.38 billion yuan, up 23.6 percent; and tertiary industry (including real estate development) completed investment of 795.84 billion yuan, up 4.2 percent. Investments in the rental and business service industry, information transmission, software and high-tech service industry and tourism increased by 1.2 fold, 42.8 percent and 23.8 percent, respectively.
By the end of 2017, the construction area of the municipality’s commercial housing totalled 126.09 million square metres (sq.m), down 3.7 percent from the previous year. About 55.07 million sq.m were for residential housing, down 7.1 percent. The total sales area of commercial housing was 8.75 million sq.m, down 47.8 percent, for which the sales area of residential housing accounted for 6.13 million sq.m, down 38.3 percent.
Steady progress was also made in government-subsidised housing. By the end of 2017, its construction area was 42.78 million sq.m, accounting for 33.9 percent of the total area of city’s newly- constructed commercial housing, up 3.7 percent from the previous year. Its sales area was 2.67 million sq.m, accounting for 30.5 percent of the total sales area of the city’s newly-built commercial housing, up 12.6 percent over the previous year.
Steady Growth in Market Consumption
In 2017, the municipality’s total market consumption amount was 2.38 trillion yuan, up 8.5 percent compared with the previous year. The service consumption amount was about 1.22 trillion yuan, up 11.8 percent. It accounted for 51.3 percent of the total consumption amount and contributed to 69.4 percent of total consumption growth.
The total retail sales of social consumer goods was about 1.16 trillion yuan, up 5.2 percent. Of this amount, above-norm retail and wholesale enterprises generated total retail sales of 237.14 billion yuan through online sales, up 10.9 percent. Based on consumption patterns, retail sales of commodities gained about 1.05 trillion yuan, up 4.9 percent; the income of the catering industry was 102.88 billion yuan, up 7.7 percent. Retail sales for household appliances and audiovisual equipment, cultural and office supplies and newenergy vehicles rose by 18.1 percent, 16.4 percent and 15.3 percent, respectively.
Stable Trend in Consumption Prices, Rising Production Prices
In 2017, the municipality’s consumer prices increased by 1.9 percent compared with 2016. Prices for consumer goods remained unchanged while those for services rose by 4.7 percent.
Prices for seven of the eight main categories of consumption commodities rose. Among them, prices for food, liquor and tobacco rose by 0.5 percent, prices for housing rose by 3.8 percent, prices for daily supplies and service-related items rose by 0.6 percent, those for transport and communications rose by 0.3 percent, prices for education, culture and entertainment rose by 2.3 percent and those for health care and other service items rose by 7.4 percent and 2.7 percent, respectively. However, the price of clothing decreased by 2.2 percent. In December, the municipality’s general consumer price rose 2.2 percent year on year, an increase of 0.5 percent from the previous month.
The municipality’s industrial production price and purchasing price saw a growth of 0.7 percent and 4.4 percent over the previous year. In December, the year-onyear growth of the industrial production price and purchasing price were 0.1 percent and 1.9 percent, with both up 0.3 percent month-on-month, respectively.
Faster Growth in Residential Income
In 2017, the municipality’s average percapita disposable income was 57,230 yuan, an increase of 8.9 percent over 2016; however, the actual growth was 6.9 percent after deducting price factors. Based on location of residence, the average per capita disposable income of urban residents was 62,406 yuan, up 9.0 percent, and the disposable income of rural residents was 24,240 yuan, up 8.7 percent; the actual growth was 7 percent and 6.7 percent for urban and rural residents after deducting price factors.
Permanent Population Drops
At the end of 2017, Beijing had a permanent population of 21.707 million, a decrease of 22,000, or down 0.1 percent from the end of 2016. The permanent population aged 0–14 was 2.264 million, accounting for 10.4 percent of the total; the permanent population of those aged 15–59 was 15.861 million, accounting for 73.1 percent; and the permanent population aged above 60 was 3.582 million, accounting for 16.5 percent.
Based on location of residence, the permanent urban population was 18.766 million, accounting for 86.5 percent of the municipality’s total permanent population; and the permanent rural population was 2.94 million.
The municipality saw overall stable economic operation in 2017. In 2018, it will continue to promote supply-side structural reform and realise high-end economic development.