China’s tech hub Shenzhen sees economic performance tumble against competition in the first half
- Shenzhen’s two-year average growth rate in the first half – used to reduce coronavirus distortions – was 4.8 per cent, well below pre-Covid-19 levels
- Analysts say weak investment and consumption, as well as a slowdown in revenue growth among its biggest firms, have weighed on economic output
Shenzhen’s economy – usually a top performer in southern China – is facing a slowdown after posting one of the lowest half-year growth results in Guangdong province, amid poor fixed asset investment and slowing revenue expansion at some of its biggest companies.
The city’s gross domestic product (GDP) grew 9.7 per cent in the first six months from a year earlier, making it the third worst performing of the province’s 21 cities.
Its two-year average growth rate – used to reduce coronavirus distortions – was 4.8 per cent, well below pre-Covid-19 levels of 7.4 per cent in 2019, data from the local statistics agency showed.
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Shenzhen’s growth in the second half of the year is expected to follow a similar course to the first six months, and local authorities will drive more investment in infrastructure and public services to boost economic performance, said Guo Wanda, vice-president of the Shenzhen-based think tank the China Development Institute.
“Economic growth in the second half of the year will depend largely on the capability of those leading industrial enterprises for recovery,” he said. “That is a very important aspect of Shenzhen’s economic growth.”
Shenzhen, known as China’s Silicon Valley and the richest city in the southern province of Guangdong, has surpassed Hong Kong and Singapore over the past two years in terms of GDP.