Chinese economy powering ahead, fulfilling targets

22nd January, 2019 10:39:16 printer

BEIJING: In the midst of a complex external environment, China's economy ended 2018 on firm footing, with better quality and improved structure.

The world's second-largest economy grew 6.6 percent year-on-year to reach 90.0309 trillion yuan (about 13.28 trillion U.S. dollars) in 2018, above the official target of around 6.5 percent, data from the National Bureau of Statistics (NBS) showed Monday, reports Xinhua.

China is still and will long remain in an important period of strategic opportunity for development, and its fundamentals of long-term sound development do not and will not change, Ning Jizhe, head of the NBS, said at a press conference.

While the 6.6-percent growth rate was lower than the 6.8-percent growth registered in 2017, it is still a relatively fast pace that pointed to resilience in the economy, analysts said. The pace marked the fastest among the world's top five economies, noted Ning, adding that China contributed to nearly 30 percent of the world's economic growth and remained the largest contributor to global growth.

A closer look at the data showed some bright spots in the economy. Fixed-asset investment (FAI), for example, has seen a pick-up in recent months thanks partly to government measures to improve infrastructure.

FAI rose by 5.9 percent year-on-year in 2018, 0.5 percentage points faster than that recorded in the first three quarters, NBS data showed.

Ning noted that the demand for infrastructure investment is still high in areas including rural development and urban transport systems, as China still lags behind many developed countries in terms of infrastructure per capita.

"As we continue to implement policies this year, we can expect stronger investment data," Ning said.

Resilience was also seen in the growing spending power of Chinese consumers. Per-capita disposable income stood at 28,228 yuan in 2018, up 6.5 percent year-on-year in real terms. Per-capita consumer spending increased 6.2 percent year-on-year in real terms, reaching 19,853 yuan in 2018. The increase was 0.8 percentage points faster than the previous year. The economy also showed greater vitality last year as continued reforms reinvigorated traditional industries and expedited the development of new growth drivers ranging from high-tech manufacturing to Internet-based services.

The government pressed ahead with supply-side structural reform last year, making steady progress, Ning said.

Capacity-cut goals in saturated steel smelting and coal mining sectors were beaten, and the deleveraging also pushed forward steadily. Reduction of taxes and fees nationwide totaled more than 1.3 trillion yuan, beating forecast. Housing inventories shrank and weak areas were improved.

Meanwhile, new growth drivers were on the rise. Ning said manufacturing and services maintained rapid growth, citing surging sales in new energy vehicles, optical fibers and smart TVs. "Online retail growth surpassed 20 percent."