In 2023, as the economy steadily recovers and the demand for services from both residents and businesses expands, the effective implementation of various policies supporting service sector development has propelled China’s service industry into a phase of continuous structural optimization and upgrading, jointly sustaining robust growth.
Significant Contributions to GDP
During the first half of this year, the service sector’s proportion in the national GDP reached 56%, with its contribution to economic growth standing at an impressive 66.1%. This substantial contribution underscores the pivotal role played by the service industry in China’s economic landscape.
August Surge
In August, the service industry witnessed an acceleration in its recovery. The production index for accommodation and catering grew by 16.1% year-on-year, while the operational passenger transport volume in sectors such as railways and aviation surged by a remarkable 57.7%.
Sustained Prosperity
The National Business Activity Index for the service sector has remained in the prosperity zone for eight consecutive months, indicating sustained growth. Within this, industries related to ecological conservation, public facility management, culture, sports, and entertainment have consistently maintained a high level of prosperity, registering above 55% for two consecutive months. Meanwhile, sectors like retail and postal services have displayed strong business activity expectations, with index values exceeding 60%, signaling robust economic prosperity.
Diverse Growth Dynamics
Notably, it’s not just consumer-oriented services like food, accommodation, and transportation that are rebounding swiftly. The service sectors directly contributing to the real economy, such as information transmission, software, and information technology services, have also shown signs of accelerated growth. In August, the production index for these sectors increased by 11.5% year-on-year, marking a noticeable uptick from the previous month.
China’s commitment to fostering a vibrant and diversified service sector is evidently paying off. With the service industry continuing to flourish and evolve, it serves as a cornerstone for China’s economic stability and growth in 2023.