NDRC Report on China’s Economy

The head of the National Development and Reform Commission (NDRC), China’s top economic planning body, said at a press conference on March 6 that the economic growth target of around 6.5 percent set for 2017 is both necessary and attainable.

The NDRC authorities also released economic data on China during the press conference on the sidelines of the ongoing annual session of the national legislature. Here are some fresh figures from the NDRC.

China’s GDP reached 74.41 trillion yuan in 2016, up by 6.7 percent from last year, with its primary, secondary and tertiary industries up by 3.3 percent, 6.1 percent, and 7.8 percent, respectively. Consumption, as a major driver of economic growth, contributed 64.6 percent to GDP growth in 2016.

China’s energy consumption and carbon dioxide emissions per unit of GDP fell by 5% and 6.6% respectively in 2016. Major pollutants were cut in 2016 as sulfur dioxide emissions, chemical oxygen demand, ammonia nitrogen and nitrogen oxide emissions dropped by 5.6 percent, 2.6 percent, 2.9 percent and 4.0 percent, respectively.

China’s total fixed-asset investment went up by 7.9 percent in 2016, and total retail sales of consumer goods increased by 10.4 percent. China’s Consumer Price Index (CPI) rose by 2.0 percent in 2016.

In 2016, 13.14 million new urban jobs were created and the registered urban unemployment rate stood at 4.02 percent. The number of rural residents living in poverty was reduced by 12.4 million.

For 2017, China’s GDP is projected to grow by 6.5 percent or more if possible. Energy consumption per unit of GDP will be reduced by at least 3.4 percent, and carbon dioxide emissions per unit of GDP will be slashed by 4 percent.

Over 11 million new urban jobs will be created, and the registered urban unemployment rate should stay below 4.5 percent. The CPI is projected to increase by 3 percent.

A debt-GDP ratio of 3 percent is projected for 2017, and the government deficit will be 2.38 trillion yuan, an increase of 200 billion yuan from last year. Both the M2 money supply and aggregate financing in the economy are expected to grow by around 12 percent in 2017.

China will cut production capacity by around 50 million metric tons of steel and over 150 million metric tons of coal.