July 26, 2012
Translated by Zhu Na

Economic data from 18 provinces and regions for the first half of 2012 reveal that 16 areas saw per-capita disposable income growth for urban residents outpace GDP growth, according to the China Internet Information Center.

Ningxia led the way with per-capita disposable income for urban residents growing 14.4 percent in the first half while provincial GDP expanded 11.4 percent. Meanwhile, Guangdong had the biggest disparity in those figures with per capita disposable income for urban residents growing 13.5 percent to 15,779 yuan, while GDP grew only 7.4 percent.

Only in Tianjin and Shanghai did disposable income for urban residents fail to outpace GDP growth.

According to data published by the National Bureau of Statistics, China's overall GDP growth rate was 7.8 percent in the first half of the year. Urban residents' per capita disposable income year-on-year grew 13.3 percent nominally during the same period, with 9.7 percent real growth after accounting for inflation.

Jia Kang (賈康), head of the Research Institute for Fiscal Science at the Ministry of Finance, explained that one of the reasons that income was outpacing GDP growth was because of recent adjustments to minimum wage standards across the country.

According to the latest data published by the Ministry of Human Resources and Social Security, as of the end of June, 16 provinces had adjusted their minimum wage standards, on average, minimum wages increased by 19.7 percent.

Currently, Shenzhen has the highest minimum wage standard, which is set at 1,500 yuan per month and Beijing has the highest minimum hourly wage, which is pegged at 14 yuan per hour.

Jia also said that income distribution reform has played a role in lifting wages.

"From a macro point of view, the tax policy - especially in terms of the government's support for the development of small and very small enterprises - has reduced pressure on these companies," he said.

"Indirectly, this has had the effect of speeding up growth in per capita disposable income."
 
Links and Sources
China Internet Information Center: 18個(gè)省公布上半年居民人均收入近9成增速跑贏GDP