Uptick in overall services sector lifts GDP
Growth in China's real estate and financial sectors slowed in the fourth quarter of 2016, despite an uptick in the overall services sector that contributed to better-than-expected GDP growth in the quarter, National Bureau of Statistics (NBS) data showed on Saturday.
China reported on Friday that GDP expanded 6.8 percent in the fourth quarter thanks to strong consumer spending and record bank lending to stimulate the economy, despite rising debt concerns.
A detailed breakdown by industry issued by the NBS showed that China's red-hot property market, which accounts for about 15 percent of GDP, saw its growth slow to 7.7 percent in the fourth from 8.8 percent in the third quarter, adding to concerns that a cooling housing market would drag on economic growth.
It also highlighted a sharp slowdown in the financial sector, which decelerated from 5.8 percent growth in the third quarter to 3.8 percent in the fourth quarter.
Growth in the construction sector also slowed marginally in the fourth quarter to 5.9 percent from 6.0 percent in the third quarter, despite a rebound in market confidence with new housing starts unexpectedly rising 12.5 percent in December from a month earlier.
But the overall services sector remained strong in the quarter, growing 8.3 percent compared with 7.6 percent in the third quarter.
Other services overtook the real estate sector to become the fastest-growing segment of the economy, with growth of 10.6 percent in the fourth quarter, up from 8.8 percent in the third. Other services include many consumer services such as media and education, but also scientific research, social services and utilities.
Growth in transportation, storage and postal services accelerated to 9.9 percent in the fourth quarter, compared with 6.5 percent in the third quarter, a post published on the NBS' website on Saturday showed.
The retail and wholesale sector also improved marginally to post growth of 7.2 percent for the fourth quarter from 7.0 percent in the third quarter.
Despite overall slower pace of investment growth, investment in the services sector maintained double-digit growth, domestic news portal people.com.cn reported on Sunday.
Fixed-assets investment in the services sector reached 34.58 trillion yuan ($5 trillion) in 2016, up 10.9 percent year-on-year, said the report. New investment in the sector contributed to nearly 76 percent of total new investment during the year, up 15.9 percentage points from the year earlier.
Meanwhile, tax revenue from the services sector exceeded the country's total newly-added tax, representing 109.5 percent of the country's total.
