Chinese GDP Grows 6.9% in 2017


The Chinese economy expanded 6.8 percent year-on-year in the last quarter of 2017, the same as in the previous three months and beating market expectations of 6.7 percent. Considering full 2017, the economy grew 6.9 percent, well above the official target of near 6.5 percent and a 26-year low of 6.7 percent in 2016. Strong growth in industry and exports and a resilient property market were the main drivers of the expansion. For 2018, the Chinese government targets growth at around 6.5 percent, the same as in 2017 amid efforts to deleverage, contain debt and financial risks.

Considering the fourth quarter of 2017, the primary sector expanded 4.4 percent; the secondary 5.7 percent and the tertiary 8.3 percent. On a quarter-on-quarter basis, the GDP advanced 1.6 percent, below an upwardly revised 1.8 percent in the previous three months and the lowest since the first three months of 2017.
 
Considering full 2017,  agriculture went up 3.9 percent, namely production of food (0.3 percent from 2016); cotton (2.7 percent); pork, beef, mutton and poultry (0.8 percent).
 
Industrial output rose 6.6 percent, 0.6 percentage point faster than in 2016. Manufacturing advanced 7.2 percent and electricity, thermal power, gas and water supply 8.1 percent while the mining sector shrank 1.5 percent. The value added of the high-tech industry and equipment manufacturing increased by 13.4 percent and 11.3 percent respectively.
 
The services sector increased 8.2 percent, 0.1 percentage point faster than in 2016.
 
On the expenditure side, final consumption accounted for 58.8 percent of the GDP, with retail sales rising 10.2 percent.
 
Capital formation accounted for 32.1 percent of the GDP with property investment jumping 7 percent, 0.9 percentage point faster than in 2016 and the highest growth since 2014. Investment in residential buildings increased 9.4 percent and in commercial buildings 7.7 percent. On the other hand, fixed asset investment went up 7.2 percent, 0.9 percentage point slower than in 2016 and the lowest growth rate since 1999. Investment rose faster in the high-tech industry (17 percent, 2.8 percentage point higher than in 2016) and equipment manufacturing (8.6 percent, 4.2 percentage points faster in 2016) while investment in energy-intensive manufacturing decreased by 1.8 percent. Private investment went up 6 percent, 2.8 percentage points faster than in 2016 and accounted for 60.4 percent of total investment. Investment by the state holding enterprises rose 10.1 percent.
 
Total trade jumped 14.2 percent, ending two years of declines. Exports increased 10.8 percent and imports 18.7 percent. 

Chinese GDP Grows 6.9% in 2017


Joana Taborda | joana.taborda@tradingeconomics.com
1/18/2018 10:15:49 AM