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China is the world’s second largest economy behind the United States, with data including gross domestic product (GDP) growth rate, consumer price index, purchasing managers’ indices, trade and industrial production all key indicators. Photo: AFP

Economy China Economy

ExplainerChina economy 2021: latest economic data about world’s second-largest economy

China is the world’s second-largest economy behind the United States
Gross domestic product (GDP) growth rate, consumer price index, purchasing managers’ indices, trade and industrial production are all key indicators

China economy

Andrew Mullen

Published: 5:48pm, 7 Apr, 2021

Why you can trust SCMP

China’s economic data paints a comprehensive picture of the state of the world’s second-largest economy.

This includes figures pertaining to gross domestic product (GDP), the consumer price index (CPI), the producer price index (PPI), industrial production and profits, purchasing managers’ indices (PMI), retail sales, foreign exchanges reserves, imports and exports, as well as the trade balance.

However, the accuracy of official Chinese economic data has been called into question, given the lack of transparency in how it is generated.

China’s gross domestic product (GDP) growth rate: 18.3 per cent (Q1 2021)

China’s economy grew by 18.3 per cent in the first quarter of 2021.

China’s gross domestic product (GDP) is the value of all goods and services produced within the country during a specific period of time.

China GDP: what is it and why is it important?

China’s quarterly growth rate averaged 9.4 per cent from 1989 to 2019, reaching an all-time high of 15.4 per cent in the first quarter of 1993. But under pressure from the trade war and long-standing structural issues, China’s growth rate slowed to 6.1 per cent in 2019, which was the slowest since 1990.

01:33

China’s economy accelerated at end of 2020, but virus-hit annual growth lowest in 45 years

In the first quarter of 2020, China’s economy shrank by 6.8 per cent after the coronavirus shut down large swathes of the country. It recovered and ended the coronavirus-ravaged year with a strong growth surge and a GDP growth rate of 2.3 per cent in 2020.

China’s government has set an economic growth target of “above 6 per cent” for 2021.

China’s consumer price index (CPI): 1.3 per cent (May 2021)

China’s consumer price index (CPI) rose to 1.3 per cent in May 2021 from a year earlier, from 0.9 per cent in April.

China’s CPI measures changes in the prices paid by consumers for a basket of goods and services. It is an important way to measure changes in purchasing trends and to track inflation.

Beijing has set a CPI growth target for 2021 of around 3 per cent per cent, compared to around 3.5 per cent in 2020.

China inflation: how is it measured and why is it important?

China has never disclosed the weighting of its CPI “basket”, but estimates suggest that food, tobacco and alcohol combine to make up about 30 per cent, with pork believed to be the most heavily weighted product.

China’s producer price index (PPI): 9 per cent (May 2021)

China’s producer price index (PPI) rose to 9 per cent in May 2021, from 6.8 per cent in April.

China’s PPI measures the changes in the prices that manufacturers charge wholesalers for goods - so-called factory gate prices. It is an early indicator of changes in consumer prices, as it offers foresight into how much goods will cost before they hit the shelves.

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What are CPI and PPI?

While China’s consumer price index (CPI) measures changes from the consumers’ perspective, PPI takes the seller’s viewpoint.

China’s official manufacturing purchasing managers’ index (PMI): 50.9 (June 2021)

China’s official manufacturing purchasing managers’ index (PMI) stood at 50.9 in June 2021, with a reading above 50 signifying growth in activity in this survey of factory operators. This followed a reading of 51.0 in May 2021.

The official PMI largely measures the sentiment among larger firms, many which are state-owned. It is compiled from surveys of business owners, purchasing managers and supply-chain managers, gauging changes in production, new orders, employment and delivery times.

China’s official non-manufacturing purchasing managers’ index (PMI): 53.5 (June 2021)

China’s official non-manufacturing purchasing managers’ index (PMI), a gauge of sentiment in the services and construction sectors, was 53.5 in June 2021, compared with 55.2 in May 2021.

China manufacturing: everything you need to know

China’s Caixin manufacturing purchasing managers’ index (PMI): 52 (May 2021)

The Caixin/Markit manufacturing purchasing managers’ index (PMI) rose to 52 in May, from 51.9 in April.

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What is the purchasing managers' index (PMI)?

The PMI produced by Markit for Chinese business magazine Caixin measures sentiment among smaller, largely private firms.

China’s services sector: what is it and why is it important to the economy?

It is compiled from surveys of business owners, purchasing managers and supply-chain managers, gauging changes in production, new orders, employment and delivery times.

China’s Caixin services purchasing managers’ index (PMI): 55.1 (May 2021)

The Caixin/Markit services purchasing managers’ index (PMI), which focuses on smaller, private firms, fell to 55.1 in May, from 56.3 in April.

The PMI produced by Markit for Caixin magazine largely measures sentiment among smaller, largely private firms. It is compiled from surveys from business owners and supply chain managers, gauging changes in production, new orders, employment and delivery times.

China’s imports: 51.1 per cent (May 2021)

China's imports grew by 51.1 per cent in May 2021 from a year earlier, up from the 43.1 per cent in April.

Imports have become a closely watched gauge of China’s economic health as the country has transitioned from an export-driven growth model to a more consumption-based model.

China’s exports: 27.9 per cent (May 2021)

China's exports grew by 27.9 per cent in May 2021 from a year earlier in US dollar terms, down from 32.3 per cent in April.

China trade: everything you need to know

China’s export-driven economy was for decades the workshop of the world. In 2001, when it joined the World Trade Organization (WTO), China accounted for 4 per cent of the world’s exports, and by 2017, that had risen to 13 per cent.

The trade war with the United States, though, damaged China’s exports as tariffs made its goods more expensive for American buyers.

China’s trade balance: US$45.53 billion (May 2021)

China’s total trade surplus stood at US$45.53 billion in April 2021, compared to US$42.85 billion in April.

China tariffs: what are they and how are they used?

China’s balance of trade is the difference between the monetary value of a nation’s exports and imports over a certain time period.

It became a central issue for former US president Donald Trump, who raged against America’s trade deficit with China, because China sells far more goods to the United States than it buys.

China’s retail sales: 12.4 per cent (May 2021)

China’s retail sales, a gauge of consumer spending in the world’s most populous nation, grew by 12.4 per cent in May 2021 compared with a year earlier. This was down from a rise of 17.7 per cent in April.

This has become increasingly important in China as it attempts to switch from an export-driven economy to one that relies on domestic consumption.

China’s industrial profits: 57 per cent (May 2021)

China’s industrial profits in May 2021 grew by 57 per cent year on year.

The industrial profit data covers large firms with annual revenue of over 20 million yuan (US$3 million) from their main operations.

China’s industrial production: 8.8 per cent (May 2021)

China’s industrial production, a measurement of output in China’s manufacturing, mining and utilities sectors, grew by 8.8 per cent in May 2021 compared with a year earlier, down from 9.8 per cent in April.

China’s new loans: 1.5 trillion yuan (May 2021)

Chinese banks extended 1.5 trillion yuan in new yuan loans in May 2021, up from 1.47 trillion yuan in April.

China’s surveyed jobless rate: 5 per cent (May 2021)

China’s surveyed jobless rate, an imperfect measurement of unemployment in China that does not include figures for the nation’s tens of millions of migrant workers, stood at 5 per cent in May 2021, down from 5.1 per cent in April.

Beijing has set a target of creating over 11 million new urban jobs in 2021, compared to a target of 9 million in 2020, and a surveyed urban unemployment rate of 5.5 per cent, compared to around 6 per cent in 2020.

China’s foreign exchange reserves: US$3.22 trillion (May 2021)

China’s foreign exchange reserves, the largest in the world, rose to US$3.22 trillion in May 2021, compared with US$3.198 trillion in April.

Want to know more?

In every episode of the Inside China podcast, we take a deep dive into a specific topic, mixing independent reporting and exclusive interviews to bring you unique insights into an emerging potential superpower. Now, we are featuring regular updates on the coronavirus pandemic from across the country.

Also each week, South China Morning Post journalist Finbarr Bermingham wraps up the latest economic data from China, delves deep into the ongoing US-China trade and tech war, and examines China’s changing economic relationship with Europe, Africa and the Indo-Pacific in the China Geopolitics podcast.