China’s GDP increases 6.7 % in first half of 2016

In the first half of 2016, the Chinese economy achieved a “moderate and steady” development with its Gross Domestic Product (GDP) showing a year-on-year increase of 6.7 % at comparable prices, the country’s National Bureau of Statistics said on Friday.

Preliminary estimation showed at 34,063.7 billion yuan, the year-on-year GDP in the first half of 2016 was 6.7% higher at comparable prices. More specifically, the year-on-year growth of GDP in the first quarter was 6.7 % more than that in second quarter.

The GDP of the second quarter of 2016 went up by 1.8 % on a quarter-on-quarter base while agricultural production went down by 1.2 %.

However, general trade structure improved with the gap in the total value of exports and imports narrowing down and balance of trade showing a surplus of 1,672.0 billion yuan. This, despite the pace of growth at 3.3 % being slower than the 3.6% witnessed in the first quarter.

In June, the total value of imports and exports was 2,037.8 billion yuan, a year-on-year decrease of 0.3 %. Of this total, the value of exports was 1,174.5 billion yuan, up by 1.3 %; and that of imports was 863.3 billion yuan, down by 2.3 %.

General trade accounted for 56.4 % of the total value of imports and exports, an increase of 1.2 % points compared with the same period last year. Specifically, the export of general trade accounted for 55.7 % of the total value of exports – an increase of 1.3 % points.

Among the country’s major exports were mechanical and electronic goods (57.2 %), followed by private enterprises (46.6 % -- an increase of 3.6 %).

The export to some the countries along the “Belt and Road” increased: Exports to Pakistan by 22.5 % while those to Russia, Bangladesh, India and Egypt increased by 16.6 %, 9.0 %, 7.8 % and 4.7 % respectively.

On the other hand, the import of certain bulk commodities continued to grow during the period. China imported 494 million tons of iron ore, an increase of 9.1 %; 187 million tons of crude oil (+14.2 %) ; coal 108 million tons (+8.2 %) and ; 2.74 million tons of copper (+22 %).

The value added of the primary industry at 2,209.7 billion yuan was up by 3.1 % while. The secondary industry (13,425.0 billion yuan, up by 6.1 %; while the tertiary industry at 18,429.0 billion yuan, was up by 7.5 %.

Meanwhile, the total retail sales of consumer goods reached 15,613.8 billion yuan, a nominal year-on-year rise of 10.3 % (a real growth of 9.7 % after deducting price factors), growing at the same speed as the first quarter.

Specifically, the retail sales of the enterprises above the designated size stood at 7,107.5 billion yuan, up by 7.5 %. Analyzed by different areas, the retail sales in urban areas reached 13,424.9 billion yuan, up by 10.2 %, and the retail sales in rural areas stood at 2,188.9 billion yuan, up by 11.0 %.

Grouped by consumption patterns, the income of catering industry was 1,668.3 billion yuan, up by 11.2 %; and the retail sales of goods were 13,945.5 billion yuan, up by 10.2 %. In particular, the retail sales of the enterprises above the designated size reached 6,685.7 billion yuan, an increase of 7.6 %. In June, the total retail sales of consumer goods rose by 10.6 % year-on-year (a real growth of 10.3 % after deducting price factors), a growth of 0.92 % month-on-month.

In the first half of the year, online retail sales reached 2,236.7 billion yuan, a year-on-year growth of 28.2%, among which online retail sales of physical goods were 1,814.3 billion yuan, an increase of 26.6 %, accounting for 11.6 % of the total retail sales.