Beijing economy on road to recovery

Official statistics show positive signs of growth across industries amid pandemic worries

Statisticians said the capital's economy showed signs of steady recovery after achieving a 4.8 percent rise in the first quarter of this year amid the lingering pandemic and uncertainty affecting the international environment.

Beijing reached nearly 941.3 billion yuan ($141.56 billion) in GDP from January to March, up 4.8 percent from 2021 and 0.1 percentage points higher than the average growth of 2020 and 2021, according to government figures released on April 20.

The primary industry led the surge by gaining an increase of 6.7 percent, followed by the secondary industry at 6.2 percent and the tertiary industry at 4.5 percent.

"Such growth was hard-earned," said Zhu Yannan, deputy director of the Beijing Bureau of Statistics, at a news conference to release the figures. It was achieved under the circumstances when pandemic control and prevention remained stringent and the capital hosted the Winter Olympics and Paralympics, she said.

New and emerging industries, in which the capital has invested heavily over the past few years, showed outstanding performance.

The added value of the high-tech sector and strategic emerging industries surged 16.8 percent and 14.6 percent respectively from 2021. Each contributed more than one-fourth of Beijing's GDP in the first quarter.

During that period, the digital economy, accounting for 41.2 percent of Beijing's GDP, rose 7.2 percent year-on-year to 387.4 billion yuan.

Government statistics also show that big and medium-sized enterprises maintained a strong input in research and development. The budget of those companies for R&D surged 21.6 percent year-on-year in the first two months.

Fixed asset investment in Beijing during the first quarter also recorded double-digit growth to reach 10.3 percent year-on-year. Specifically, the investment growth stood at 8.2 percent in terms of infrastructure; 8.9 percent in the area of real estate development; and 20.2 percent in private investment.

The money mainly went to the manufacturing industry, especially in the high-tech sector, as well as information transmission; software and information technology services; accommodation and catering businesses; education; and health and social work.

Meanwhile, the consumer price index grew slightly to 1.4 percent while both the incomes and expenditures of Beijing residents increased.

Government figures show that the incomes of rural residents grew faster than those of urban residents, shortening the gap between the two.

In the first quarter, the salaried income of urban residents in Beijing surged 6.6 percent year-on-year, compared with a 9.5 percent increase achieved by rural residents.

Zhu said the local government issued policies and subsidy measures to help the employment of both urban and rural residents.

Spurred on by the Winter Olympic and Paralympic Games, residents in Beijing exercised their passion for winter sports, buying licensed goods of the Games and taking part in more fitness activities. This, in turn, boosted the sales and transactions of related industries.

Zhu said the economy in Beijing will remain under pressure from both home and abroad in the second quarter.

She noted that the local government has issued a package of countermeasures and policies to carry on the positive trend of stable and healthy economic development.

The measures include scientifically controlling and preventing the pandemic, lowering taxes and fees on enterprises, cutting fundraising costs and protecting cargo logistics.

"All of these measures aim to help relieve the problems and difficulties of industries and stabilize the basis of economic development, the market and market expectations," Zhu said.