China GDP revision: small yet large

China revised its 2011 GDP data on Wednesday. GDP growth was revised up by 0.1 percentage points, from 9.2 per cent to 9.3 per cent. While this sounds small – certainly by comparison with Indian standards – it actually represents  difference of Rmb132bn, or $20.7bn – not a whole stimulus package, perhaps, but enough for a fair bit of infrastructure spending.

The boost is all from services, which made up for downward revisions in agriculture and manufacturing.

According to the release, the service sector grew 9.4 per cent last year, revised up from 8.9 per cent. This extra Rmb172bn was enough to cover smaller growth in agriculture (4.3 per cent from 4.5) and manufacturing (10.3 per cent from 10.6).

Although the contraction in manufacturing growth may not be a surprise to those watching the industrial struggles in eastern China, the higher level of services is something to welcome. The adjustment in the sector’s share of overall GDP is small, at 0.3 percentage points, bringing it to 43.1 per cent. In many developed markets, the corresponding figure is more than 70 per cent.

Here’s the table:

[table id=29 /]

Overall, the size of the Chinese economy in 2011 reached Rmb47.3tn, or $7.45tn, nearly half the size of the US economy, at $15.09tn. Chinese GDP growth for 2012 is set to be below 9 per cent for the first time in a decade, according to the World Bank, with official forecasts at 7.5 per cent.

Related reading:
China manufacturers face fall in demand
, FT
China GDP: green shoots, black clouds
, beyondbrics