H1 GDP figures show western China catching up

Provincial GDP growth remained stable in the first half of 2018, with data showing that investment kept moving west while the eastern provinces upgraded their industries, said experts.

GDP data from 19 provinciallevel regions had been released as of Thursday, with central and western provinces posting the fastest growth rates.

Southwest China's Guizhou Province led the list with 10 percent growth, followed by East China's Jiangxi Province with 9 percent. Northwest China's Shaanxi Province also outperformed with an 8.6 percent growth rate.

“The performance of central and western provinces stands out, with places like Guizhou, Shaanxi, and also the large urban centers of Chengdu (in Southwest China's Sichuan Province) and Wuhan (in Central China's Hubei Province) showing strong growth as they develop their manufacturing sectors,” said Cong Yi, an economics professor at the Tianjin University of Finance and Economics.

The largest GDP reported was that of South China's Guangdong Province, with 4.63 trillion yuan ($683 billion), 7.1 percent above its 2017 level. East China's Jiangsu Province closely followed with 4.49 trillion yuan and a 7 percent growth rate. East China's Shandong Province came third, just short of 4 trillion yuan.

Experts noted that investment had slowed sharply at the national level, while strong growth in consumption showed that national policies of deleveraging and a greater focus on internal consumption kept overall growth at a high level, even in the more developed provinces.

“The industrial base in provinces on the eastern seaboard is well-established [compared with other provinces], and higher wages means growth in consumption

protects them from feeling too much impact from deleveraging efforts,” said Xu Hongcai, an economist with the China Center for International Economic Exe changes, told the Global Times.

“Guangdong have been making progress in their industries, ‘emptying the cage to let the right birds in', as the saying goes High -technology ing goes. High-t companies such as Huawei which is based in the e province, show Guangdong is leading in growing industries.” ing innovative in

Growth was below average in provinces such as South China's Hainan with 5.4 percent, where reform efforts to diversify its prominent tourism industry have yet to bear fruit