In Q1, facing the unexpected COVID-19, the whole city acted under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core to push forward the epidemic prevention and control in tandem with economic and social development. Given the continuously positive trends in epidemic prevention and control and our ongoing vigorous efforts for resumption of work and production, the decline in major indicators narrowed compared with that in January and February, the people’s basic livelihood needs were well met, and the economic and social order was being restored at an accelerating rate.

According to the unified calculation results on GDP, Beijing’s GDP registered RMB 746.22 billion in Q1, decreasing by 6.6% year on year based on comparable price. By industries, the value added of the Primary Industry was RMB 1.27 billion, down by 22.9% year on year; the value added of the Secondary Industry was RMB 90.96 billion, down by 17.5% year on year; the value added of the Tertiary Industry was RMB 653.99 billion, down by 4.8% year on year.

1. Production slowed in the service sector while the sectors of finance, information and education maintained growth

In Q1, the value added of the Tertiary Industry in Beijing decreased by 4.8% year on year on comparable price. Specifically, the finance sector achieved value added of RMB 168.25 billion, increasing by 5.5%; the sectors of information transmission, software and information technology services realized value added of RMB 119.6 billion, increasing by 3.5%; the sector of education realized value added of RMB 42.3 billion, increasing by 1.8%. The sectors of finance and information services accounted for more than 40% of the Tertiary Industry, and played an important supporting role.

2. The decline in industrial production narrowed, all the pillar industries took a turn for the better

In Q1, the value added of industrial enterprises above designated size in Beijing decreased by 14.7% year on year on comparable price, with the decline rate being 1.5 percentage points lower than that in January and February. In key sectors, the value added of the sector of computer, communication equipment and other electronic equipment manufacturing increased by 5.9%, with the growth rate being 0.9 percentage point higher than that in January and February; that of the sector of electric and heat power production and supply decreased by 1.4%, that of the sector of pharmaceutical manufacturing decreased by 5.3%, and that of auto industry decreased by 30.2%, with the decline rate being 0.4 percentage point, 9.1 percentage points and 4.8 percentage points lower than that in January and February respectively. Some high-tech products were growing well, the output of LCD module increased by 67.4% and the output of integrated circuit increased by 34.5%.

3. Investment in fixed assets gradually recovered, investment in high-tech industries grew rapidly

In Q1, the total investment in fixed assets of Beijing (excluding rural households) decreased by 7.1% year on year, with the decline rate being 12.8 percentage points lower than that in January and February. By investment fields, the investment in infrastructures declined by 30.6%, the investment in real estate development declined by 6.4%, with the decline rate being 3.5 percentage points and 4.5 percentage points lower than that in January and February respectively; and the private investment increased by 4.6%. By industries, the investment in the Primary Industry declined by 59.6%; the investment in the Secondary Industry grew by 3.4%, of which, the investment in high-tech manufacturing sector grew by 46.1%; the investment in the Tertiary Industry declined by 7.2%, of which, the investment in the sector of high-tech services grew by 12.9%.

In Q1, the area of newly constructed commercial housing reached 3.112 million square meters, decreasing by 16.1% year on year. The area of sold commercial housing amounted to 867,000 square meters, decreasing by 41.3% year on year.

4. Market consumption declined, the on-line retail and daily necessities retail were active

In Q1, the total market consumption in Beijing declined by 12.5% year on year, of which, service consumption declined by 4.2%, total retail sales of consumer goods amounted to RMB 271.65 billion, down by 21.5%. Among the total retail sales of consumer goods, the commodity retail sales was RMB 256.46 billion, down by 19.0%; and the income from catering was RMB 15.19 billion, down by 48.4%. The on-line retail performance was active; the on-line retail sales of wholesale and retail enterprises and accommodation and catering enterprises above designated size reached RMB 80.74 billion, up by 15.9%. The daily necessities showed good growth trend; for wholesale and retail enterprises above designated size, the retail sales of grain, oil and foodstuffs increased by 18.8%; the retail sales of sports and entertainment goods and the communication equipment respectively increased by 17.1% and 16.0%.

5. The increase in Consumer Price Index (CPI) fell and the Producer Price Index (PPI) remained stable

In Q1, Beijing’s CPI increased by 3.8% year on year. In specific, the price of consumer goods rose by 4.0% and that of services went up by 3.4%. In 8 categories of commodities and service items, “the prices of 5 categories increased while the prices of 3 categories dropped”: the price grew by 9.7% for food, tobacco & alcohol, 0.2% for clothing, 3.4% for education, culture & entertainment, 13.1% for healthcare, and 8.3% for other supplies & services; the price fell by 0.2% for housing, 0.5% for household goods & services, and 2.4% for transportation & communication. In March, CPI increased by 3.2% year on year, with the growth rate being 0.4 percentage point lower than that of the previous month, and decreased by 0.7% month on month. 

In Q1, Beijing’s PPI rose by 0.6% year on year and IPI remained the same year on year. In March, PPI increased by 0.4% year on year and decreased by 0.3% month on month; IPI remained the same year on year and decreased by 0.3% month on month.

6. Employment situation was generally stable, the growth of resident income was slowed down

In Q1, the surveyed urban unemployment rate of Beijing was 4.3%, remaining at a stable level. The per capita disposable income of residents in Beijing was RMB 17,874, up by 4.7% year on year and up by 0.9% in real terms on inflation-adjusted basis. Among the four income categories, “three increased and one decreased”: wage income increased by 4.9%; transfer net income increased by 9.6%; property net income increased by 2.3%; and operating net income decreased by 29.1%.

On the whole, in Q1, Beijing made initial achievements both in epidemic prevention and control and in the resumption of work and production; the restoration of economic and social order was accelerated; the achievements were hard won. Moving forward, we must resolutely put into practice the decisions and arrangements of the CPC Central Committee, the State Council, the Municipal Party Committee and the Municipal Government. In the normalized epidemic prevention and control, we must accelerate the full resumption of work and normal life and coordinate all fronts in promoting economic and social development, so as to ensure steady and healthy economic development.