China GDP breakdown 2012-2013 (with chart)

In the year 2012-2013, the GDP (Gross Domestic Product) of China reached 51932.2 billion Yuan (or USD 8332.48 billion) with a 7.8% year on year growth according to the National Bureau of Statistics. The 7.8% GDP growth of 2012 also marked the lowest growth rate since 1999 though it is still better than the market expectation of 7.5%. For years, China had always hold the banner of “securing 8% GDP growth” to keep enough of job creation because of the huge labor force running into cities. But since 2011, the start of the 12th Five Year Plan, the policy direction seemed a gradual change with focus being shifted from growth of GDP numbers to the quality of growth in term of setting a 7% annual GDP growth target and releasing policies to control overheated housing property, corruption as well as other major issues. These policy changes will certainly affect the economic growth for the short term but they are expected to benefit the economy in the long run if well implemented.

gdp-by-districts

Province/Municipality Total GDP(Billion RMB) Total GDP(Billion USD) GDP Growth Rate
Guangdong Province 5700.00 914.56 10.20%
Jiangsu Province 5405.82 867.36 10.10%
Shandong Province 5001.32 802.46 9.80%
Zhejiang Province 3460.60 555.25 9.60%
Henan Province 3000.00 481.35 10.10%
Hebei Province 2657.50 426.39 9%
Liaoning Province 2480.00 397.91 9.50%
Sichuan Province 2384.98 382.67 12.60%
Hubei Province 2225.02 357.00 11.30%
Hunan Province, 2215.42 355.46 11.30%
Shanghai 2010.13 322.52 7.50%
Fujian Province 1970.18 316.11 11.40%
Beijing 1780.10 285.62 7.70%
Anhui Province 1721.21 276.17 12.10%
Inner Mongolia Autonomous Region 1600.00 256.72 15.10%
Shaanxi Province 1445.12 231.87 12.90%
Heilongjiang Province 1369.16 219.68 10%
Guangxi Zhuang Autonomous Region 1300.00 208.58 10.90%
Jiangxi Province 1294.85 207.76 11%
Tianjin 1288.52 206.74 13.80%
Shanxi Province 1211.28 194.35 10.10%
Jilin Province 1193.78 191.54 12.00%
Chongqing 1145.90 183.86 13.60%
Yunnan Province 1030.98 165.42 13%
Xinjiang Uygur Autonomous Region 750.00 120.34 12%
Guizhou Province 680.20 109.14 13.60%
Gansu Province 556.90 89.35 13%
Hainan 285.50 45.81 9.10%
Ningxia Hui Autonomous Region 232.66 37.33 11.50%
Qinghai Province 188.45 30.24 12.30%
Tibet Autonomous Region 70.00 11.23 12%

GDP Breakdown by Areas throughout 2012 (China has 23 Provinces, 5 Autonomous Regions, 4 Municipalities & 2 Special Regions, the economic data of special regions of Hong Kong and Macau and province of Taiwan is generally not included in the country’s GDP statistics) (Source: National & Local Bureau of Statistics)

Distributive Equality

2003-0.479
2004-0.473
2005-0.485
2006-0.487
2007-0.484
2008-0.491
2009-0.490
2010-0.481
2011-0.477
2012-0.474.

Data shows that the gini coefficient of China is running in a high level reaching the peak of 0.491 in year of 2008 but keep decresing in the following year touching 0.474 in the last year. From paper, the gap between rich and poor is basically the same as it was 10 years ago. But a different report, released in December by researchers from the Southwestern University of Finance and Economics in the city of Chengdu, marked China’s Gini at 0.61 for 2010. Despite the data difference, it is widely accepted the the gap between rich and poor of China is still in a high level which could further lead to a number of social and economic problems.

The economic reform that happened since 1979 till now under the leadership of Deng XiaoPing, who was later considered as the designer of the economy of China, changed the plan economy that had dominated during the majority of time after formal independence of the new China with the market system as secondary. The government started to reform the economy and introduce the market economy which had previously been considered as the economy form of the capitalism into the socialism economy because the Chinese leadership had found out the shortcoming of the over centralized economic planning and the effectiveness of using market forces. Though the economy reform has speeded up its pace in the new century especially with close interaction with the global economy and under the pressure in the WTO framework, the Government role in Chinese National Economy is still critical.

FDI

The Commerce Department today held a regular media press announcing data which show that from January to February, China’s actual use of foreign investment reached 17.484 billion U.S. dollars with a year-on-year drop of 1.35%. In February alone, China’s actual use of foreign investment was 8.214 billion U.S. dollars achieving an increase of 6.32%. This is the first time this digit returned to positive for the eight consecutive months. But it is still early to conclude that the FDI is again returning back to the high growth track with data of the following months need to be monitored closely to make a safe judgement.

Consumer Purchasing Power

Along with the surge of GDP growth, the influence increase consumer purchasing power has also become obviously in the recent years. International shopping and consumption expert Global Blue, announced on March 15, 2013 that the amount of tax free shopping from Chinese consumers reached a record 3 billion euros (about 24.4 billion yuan) in 2012, an increase of 58% compared to that of 2011. Arjen Kruger, executive vice president of Global Blue said: “in the past six years, Global Blue witness the rise of Chinese shoppers. 2012 is the second year in a row in which China is the no.1 sourcing country of our global shoppers, spending up to € 3,000,000,000. Global Blue is committed to helping Chinese tourists travelling abroad to enjoy cheaper shopping. We not only provide shopping discounts to consumers before departure but also will also update the local latest shopping secret after their reaching the destination. “

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