West China takes lead in disposable income growth in H1

Local people sit on a bench in Barkhor Street, Lhasa, capital of Southwest China's Tibet autonomous region, July 17, 2017. [Photo/VCG]

China's western provinces and regions saw the fastest disposable income growth in the first half of this year, according to a report by 21st Century Business Herald.

Tibet autonomous region topped the country with a 14.26 percent growth rate, followed by Guizhou and Yunnan provinces, where their nominal disposable income increased by more than 10 percent in H1, the report said.

Qinghai, Ningxia, Xinjiang, Jiangxi and Chongqing were also in the top, with their disposable income growth rates exceeding 9 percent in H1.

21st Century Economic Institute found the fastest-growing regions of disposable income generally have fast economic growth and industrial growth.

The nominal GDP growth rates of Tibet and Guizhou, the top two fastest-growing regions of disposable income in H1, reached 17.59 and 16.11 percent in H1 respectively, ranked first and third in China, according to the report.

Tibet, Guizhou and Yunnan also led the country in industrial growth, ranked first, third and fourth with growth rates of 14.1, 10.0 and 9.9 percent in H1.

The country's slowest disposable income growth rates in H1 were registered in Shanxi, Jilin, Heilongjiang and Liaoning provinces, which were lower than 7 percent. The four provinces came bottom in economic growth in China, with sixth, fourth, third and first slowest actual GDP growth rate in H1 respectively.

The institute also found the growth gap between economy and people's disposable income was expanding in some regions, especially the ones where the service sector accounts for smaller of the economy than industry.

Guizhou, Ningxia, Anhui, Jiangxi and Shaanxi, where the service sector accounts for 42 to 46 percent of the economy, about 10 percent lower than the national average, saw the growth gap between their nominal GDP growth and nominal disposable income exceeding five percentage points in H1.

By comparison, Beijing and Shanghai, with the largest proportion of service sector in China, had their nominal disposable income increasing by 9.07 and 8.60 percent in H1, higher than their nominal GDP growth, which stood at 8.70 and 7.35 percent in H1 respectively, the report said.

According to China's 13th Five-Year Plan, the government will continue to ensure residents' real incomes increase in line with economic growth.