South Chinas Guangdong Provinces GDP grew 3.3 percent in the first quarter of 2022, 1.5 percentage points lower than the national average of 4.8 percent growth, underscoring challenges facing the major manufacturing hub.
The provincial government has pledged to ramp up efforts focused on stabilizing investment, boosting consumption, supporting foreign trade in a bid to realize the provinces growth target, while keeping the COVID19 epidemic at bay.
In the first-quarter report released by Guangdong on Saturday, the provinces gross domestic product reached 2.85 trillion yuan ($438 billion), up 3.3 percent year-on-year.
Over the period, the amount of fixed-asset investment in the province grew 6.2 percent. Its retail sales slightly increased 1.7 percent year-on-year to hit 1.12 trillion yuan, while the volume of imports and exports grew 0.6 percent year-on-year to reach 1.84 trillion yuan.
The added value of industrial enterprises increased 5.8 percent to reach 890 billion yuan. The output of the advanced manufacturing sector grew by 5.9 percent, of which the bio-medicine and high-caliber healthcare equipment grew 17 percent, while advanced equipment manufacturing was up 12.5 percent.
At a conference reviewing the provinces economic situation on Saturday, Wang Weizhong, the provincial governor, said Guangdongs economy maintained overall stability in the first quarter but growth is facing difficulties and challenges due to rising uncertainties of both internal and external factors.
Wang said that Guangdong is to roll out of a new package of stimulus policies, implement tax and fee cuts to help businesses overcome difficulties and help stabilize market expectations.
In particular, the governor stressed the province needs to ratchet up consumption with strengthened fiscal measures, pointing out special activities to promote consumption across home appliances, tourism and entertainment as well as catering. By promoting consumption upgrade in rural areas, he called for efforts in nurturing new growth levers such as smart products and pre-made food.
Guangdong Province is one of China’s leading economic powerhouses. Its GDP grew by 8 percent year-on-year to reach 12.4 trillion yuan in 2021, making it the first Chinese provincial-level economy to hit the 12 trillion-yuan milestone.
Trucks exit Shenzhen Bay Port on February 14, 2022 in Shenzhen, South China’s Guangdong Province. Photo: VCG
