In an enlightening revelation by the National Bureau of Statistics, the landscape of disposable income across China’s 31 provinces in 2023 showcases significant regional economic disparities and growth patterns.
A noteworthy 21 provinces reported an average disposable income exceeding 30,000 yuan (about US$4,222), with seven surpassing the 40,000 yuan (US$5,629) mark. Remarkably, both Shanghai and Beijing have crossed the substantial threshold of 80,000 yuan (US$11,257).
The data, disclosed on January 17, 2024, illuminates the national average disposable income at 39,218 yuan (US$5,519), marking a nominal increase of 6.3% from the previous year.
After adjusting for inflation, the real growth stands at 6.1%. Urban residents enjoyed a higher average disposable income of 51,821 yuan, a 5.1% nominal growth, translating to a 4.8% real increase. Meanwhile, rural inhabitants saw their income climb to 21,691 yuan, boasting a more robust growth of 7.7% nominally and 7.6% in real terms.
Drilling down to provincial specifics, eight provinces outpaced the national average, predominantly from the affluent eastern coastal regions, including Shanghai, Beijing, Zhejiang, Jiangsu, Tianjin, Guangdong, Fujian, and Shandong.
Shanghai and Beijing stand out, with incomes soaring above 80,000 yuan, at 84,834 yuan and 81,752 yuan respectively, highlighting a significant gap with other provinces.
This income disparity underscores the economic might of Shanghai and Beijing, where high urbanization rates, advanced service sectors, cutting-edge technology industries, and a concentration of high-paying jobs attract a wealth of talent.
These cities dominate in lucrative sectors like information transmission, software, information technology services, financial services, and scientific research, contributing to their high average incomes.
Following Shanghai and Beijing, Zhejiang claims the third spot with an average disposable income of 63,830 yuan.
Ding Changfa, an associate professor of economics at Xiamen University, attributes this to Zhejiang’s thriving private economy and small urban-rural income disparity, fuelled by industrial clusters across numerous counties. This prosperity often translates into higher investment rates among residents, further boosting their income through asset gains.
The rankings continue with Jiangsu, Tianjin, Guangdong, Fujian, Shandong, Inner Mongolia, and Liaoning, delineating a clear economic pecking order.
Notably, Inner Mongolia, Chongqing, Hunan, Hubei, and Anhui lead the central and western regions, reflecting their advanced industrialization and urbanization levels.
