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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
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He Huifengin Guangdong
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.
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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.
The two-year average growth rate in the first half was the slowest pace of expansion since at least 1980, according to state-run news portal southcn.com. Nationwide, GDP grew 12.7 per cent in the first six months of the year and Guangdong’s provincial economy grew 13 per cent.
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Analysts attributed the city’s poor performance to weak investment and consumption, as well as a marked slowdown in revenue growth for major industrial enterprises, particularly technology giants like Huawei Technologies Co., which have suffered from trade and geopolitical tension between the United States and China.
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