INFOGRAPH: Tertiary industry key to China's GDP growth
Source: Mysteel
Feb 09, 2022 17:30
So far in the 21st century, China's GDP growth peaked in 2007 at 14.2% on year, though back then 7.1 percentage points were from the industrial sector and 6.7 percentage points were contributed by the tertiary industry with the balance from agriculture.
By 2014, though, China's industrial sector contributed to 3.4 percentage points of the 7.4% GDP growth, while the tertiary industry accounted for 3.7 percentage points and agriculture stayed largely stable at 0.3 percentage point.
The trend has been continuing since then, and even in the year of 2020 when China scored the a 2.2% on-year GDP growth, or the lowest in this century, tertiary industry and the industrial sector evenly split the contribution balance of 2 percentage points with agriculture shouldering the balance of 0.2 percentage point.
source: NBS
So far in the 21st century, China's GDP growth has slowed into a single-digit growth since 2011, though still above the 6% over 2011-2021 other than the COVID-19-struck 2020.
source: NBS
No breakdowns of the contribution by the three sectors for 2021 yet in NBS' database, and for 2022, Beijing has not specified a GDP growth target, though it has already reiterated the importance of boosting domestic consumption on a few occasions, so most probably, tertiary industry will continue to lead the way in supporting the domestic GDP growth.
Such an economic development model is rather sustainable too, as it is eco-friendlier and will generate more new job for fresh graduates every year, and the industrial sector, on the other hand, will been given the development window to evolve towards automation and intelligent mode, according to my personal view.
Written by Hongmei Li, li.hongmei@mysteel.com
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