Since the beginning of this year, facing serious challenges in an increasingly complex international environment and “triple pressure” in the domestic economic development, Beijing’s economy was under increasing downward pressure. Especially in Q2, when unexpected changes occurred to both internal and external environment, combined with high cost for the COVID-19 vaccine production for the city. Notwithstanding all the difficulties and challenges, under the strong leadership of the Municipal Party Committee and the Municipal Government, the whole city, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, coordinated efficiently the pandemic prevention and control and the economic and social development, responded rapidly to get a quick control over COVID-19. A number of policies and measures were introduced to stabilize the economy, advantaged sectors and the emerging kinetic energy continued to play a supporting and leading role. Concerted efforts were exerted internally and externally to actively respond to the impact of unexpected factors. The momentum of recovery and picking up has been seen in the economy as a whole.

According to the unified calculation results on GDP, Beijing’s GDP in the first half of this year totaled RMB 1.93522 trillion, up by 0.7% year on year based on constant price. Specifically, the GDP in Q1 reached RMB 941.34 billion, up by 4.8%, in Q2 reached RMB 993.88 billion, down by 2.9%. By industry, the value added of the Primary Industry was RMB 4.37 billion, up by 7.0%; the value added of the Secondary Industry was RMB 293.35 billion, down by 11.4%; the value added of the Tertiary Industry was RMB 1.6375 trillion, up by 3.3%.

I. Agricultural production remained stable, with enhanced capacity to stabilize output and ensure supply 

In the first half of this year, the realized gross output value of agriculture, forestry, animal production and hunting, fishing in Beijing reached RMB 10.34 billion, up by 5.8% year on year based on comparable price, with the growth rate remaining unchanged from Q1. Specifically, driven by the increase in the output of grain and vegetables, the output value of agriculture (planting industry) increased by 7.9%; with the steady progress of the new round of million mu afforestation projects, the output value of forestry increased by 13.9%. The capacity of agricultural production to ensure supply continued to be enhanced, the output of summer crops, vegetables and edible mushrooms hit 96,000 tons and 570,000 tons respectively, up by 39.5% and 19.3% respectively. The number of slaughtered pigs and the pig stock was 217,000 and 328,000, increasing by 36.5% and 42.0% respectively.

II. Industrial production declined, with decline rate lowered in June

Affected by COVID-19 and the increase in the COVID-19 vaccine production base, the value added of industrial enterprises above designated size in Beijing in the first half of this year fell by 15.1% (a rise of 1.0% if removing the vaccine production factor) year on year based on comparable price. Specifically, with the steady progress of the resumption of work and production and the further recovery of domestic supply chain, the decline rate of the value added of industrial enterprises above designated size lowered to 25.4% in June from the 39.6% in May (an increase of 10.4% from the decline of 7.0% in May if removing the vaccine production factor). In pillar industries, the value added in computer, communication equipment and other electronic equipment manufacturing increased by 8.9%; that of the sector of electric and heat power production and supply increased by 4.4%; that of the auto industry decreased by 18.6%; and that of pharmaceutical manufacturing industry decreased by 47.8%. The production of some products maintained rapid growth, the output of new-energy vehicles, civil drones and integrated circuits increased by 1.6 times, 33.3% and 5.4% respectively.

III. The service sector maintained growth, the advantaged sectors continued to play a supporting role

In the first half of 2022, the value added of the Tertiary Industry in Beijing increased by 3.3% year on year on constant price. Specifically, the sector of information transmission, software and information technology services realized value added of RMB 383.2 billion, increasing by 9.4%; the finance sector realized value added of RMB 383.18 billion, increasing by 6.6%; together, the two sectors drove the value added of the service sector to increase by 3.5 percentage points. Sectors such as accommodation and restaurants, transport, storage and post, renting & leasing and business services, culture, sports and entertainment were greatly affected by the COVID-19 pandemic and the value added of these sectors presented downward trend.

IV. Investment scale continued to expand, investment in hi-tech industry and social fields grew rapidly

In the first half of this year, the total investment in fixed assets of Beijing (excluding peasant households) increased by 5.5% year on year, with the growth rate being 4.8 percentage points lower than that in Q1 and 2.7 percentage points higher than that in January to May. Specifically, the investment in infrastructures grew by 6.0%; the investment in real estate development grew by 1.0%. By industry, the investment in the Primary Industry grew by 40.6%; the investment in the Secondary Industry grew by 37.5%, of which, the investment in manufacturing sector grew by 38.4%; the investment in the Tertiary Industry grew by 2.6%. The investment in hi-tech industry maintained rapid growth. Driven by integrated circuits and medical health projects, among others, the investment in hi-tech manufacturing sector grew by 78.1%; and driven by the sectors including information transmission, software and information technology services, the investment in hi-tech services grew by 61.7%. The investment in social fields grew by 17.0%, of which, the investment in health care and social work grew by 86.4%, and the investment in education grew by 45.8%.

By the end of June, the area of constructed commercial housing of Beijing reached 123 million square meters, decreasing by 6.0% year on year; of which, the area of constructed residential buildings amounted to 60.739 million square meters, decreasing by 4.8%. In the first half of this year, the area of sold commercial housing of Beijing amounted to 4.461 million square meters, decreasing by 8.7% year on year, with the decline rate being 2.3 percentage points and 8.1 percentage points lower than that in Q1 and in January to May, respectively.

V. Consumption recovered somewhat, essential living consumption and online consumption maintained growth

In the first half of this year, the total market consumption in Beijing fell by 4.6%. Specifically, service consumption fell by 2.4%; total retail sales of consumer goods summed up to RMB 670.67 billion, down by 7.2%, with the decline rate being 0.5 percentage points lower than that in January to May, and the total retail sales of consumer goods fell by 5.2% in June, with the decline rate being 20.5 percentage points lower than that in May. Among the total retail sales of consumer goods, by consumption pattern, the commodity retail sales were RMB 624.05 billion, down by 6.4%; and the income from catering was RMB 46.62 billion, down by 16.4%; the decline rate of the commodity retail sales was 0.8 percentage points lower than that in January to May. Breaking down by commodity categories, among the wholesale and retail enterprises above designated size, the retail sales of cereals, oils and foodstuffs and beverages relating to essential living consumption grew by 6.2% and 9.8% respectively. Online consumption maintained growth, the wholesale and retail enterprises and accommodation and catering enterprises that are above designated size recorded sales of RMB 254.81 billion, up by 4.2%.

VI. The Consumer Price Index (CPI) rose moderately, the rise in the Producer Price Index (PPI) dropped

In the first half of this year, Beijing’s CPI rose by 1.8% year on year. In specific terms, the price of consumer goods rose by 2.5% and that of services went up by 1.1%. In the eight categories of commodities and service items, the price grew by 6.7% for transportation & communication, 2.0% for food, tobacco & alcohol, 1.5% for education, culture & entertainment, 1.2% for other supplies & services, 0.9% for clothing, 0.8% for housing, 0.8% for healthcare, and 0.6% for household goods & services. In June, CPI of Beijing rose by 2.5% year on year, with the growth rate being 0.3 percentage points higher than that in the preceding month, and fell by 0.1% month on month. 

In the first half of this year, Beijing’s PPI rose by 2.9% year on year and Industrial Production Index (IPI) was up by 7.9% year on year. Specifically, PPI rose by 3.2% and 2.6% year on year respectively in April and May, and rose by 2.4% year on year in June, with the growth rate being 0.2 percent points lower than that in the preceding month, and remained the same month on month; IPI rose by 7.7% year on year and 1.0% month on month in June.

VII. Employment was generally stable, and resident income increased steadily

In the first half of this year, the average surveyed urban unemployment rate of Beijing was 4.7%. In June, the surveyed urban unemployment rate of Beijing was 5.1%, falling slightly from the preceding month. 

The per capita disposable income of residents in Beijing was RMB 39,391, up by 3.3% year on year. All the four income categories increased: wage income increased by 3.8%, operating net income increased by 2.7%, property net income increased by 2.2%, and transfer net income increased by 2.5%. In specific terms, the per capita disposable income of urban residents was RMB 42,680, up by 3.1% year on year.

On the whole, results are seen from the package of policies and measures to stabilize the economy in June, the economy in Beijing gradually overcame the adverse impacts like COVID-19, showing good momentum in recovery and strong resilience. However, it is also worth noting that the global economic growth has slowed down, and the uncertainty has risen. The domestic economic recovery is still confronted with challenges, and the foundation for economic recovery in Beijing is not yet solid. The production and demand indicators are still low, and market entities are still under great pressure in production and operation. Moving forward, we will continue to uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, maintaining stability as the top priority while pursuing progress. We will resolutely follow the requirements of “containing the COVID-19 pandemic, stabilizing the economy, and achieving safe development”, and conscientiously implement the guiding principle of the Thirteenth Beijing Municipal Congress of the Communist Party of China. On the basis of consolidating the achievements made in containing and fighting COVID-19, we will focus closely on the implementation of policies and measures, put effort into ensuring and improving people’s living standards, further unleash the internal growth potential and vitality, promote the continuous recovery of economy, and ensure the economic performance within a reasonable range.