China’s tech hub Shenzhen set to hit 2019 growth target after surprising fourth quarter rebound amid trade war

Shenzhen’s gross domestic product (GDP) is estimated to reach over 2.6 trillion yuan (US$374 billion) in 2019, a growth rate of 7 per cent

But the home of technology giants Tencent, Huawei, and DJI is set to lower its 2020 growth target to 6.5 per cent from 7.0 per cent in 2019

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Shenzhen’s gross domestic product (GDP) was estimated to reach over 2.6 trillion yuan (US$374 billion) in 2019, which would meet the growth target set by the central government. Photo: Xinhua

Published: 6:03pm, 9 Jan 2020Updated: 9:24pm, 16 Feb 2020

Shenzhen’s economy is set to have expanded by 7.7 per cent in 2019, with a surprising rebound in the fourth quarter helping the home of technology giants Tencent, Huawei, and DJI reverse a rapid deceleration earlier in the year to meet its target, according to the mayor of the southern Chinese city.

The city’s gross domestic product (GDP) was estimated to reach over 2.6 trillion yuan (US$374 billion) in 2019, which would meet its growth target, the city’s mayor Chen Rugui told the annual local legislature meeting that began on Wednesday.

At the same time, Shezhen lowered its 2020 growth target to 6.5 per cent from 7.0 per cent in 2019.

In 2018, the city’s GDP reached 2.42 trillion yuan, surpassing Hong Kong for the first time, however, for most of 2019, Shenzhen’s economic growth fell faster than the rest of China. In the first nine months of last year, Shenzhen’s GDP grew by 6.6 per cent year to date.

Local governments do not release quarterly year-on-year growth figures, but economists from China International Capital Corporation said Shenzhen’s economy grew 5.2 per cent in the third quarter of 2019 having grown 7.6 per cent and 7.2 per cent in the first two quarters.

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