Robust local economic data point to signs of resilience

The robust economic performance of many local governments and cities has offered concrete evidence that China’s economic growth remained resilient during the first quarter, with the pivot shifting from traditional industries to emerging industries.

During the first quarter of the year, Yunnan province posted gross domestic product growth of 9.7 percent on an annualized basis, the highest among the 31 provinces, municipalities and autonomous regions which released economic indicators recently, followed by Guizhou province (9.2 percent) and the Tibet autonomous region (9.1 percent).

Among the 31 provinces, municipalities and autonomous regions, the majority of them recorded GDP growth rates higher than the national average of 6.4 percent, according to the statistics bureaus at the provincial level.

“Since the beginning of this year, Yunnan has vigorously promoted the implementation of 22 policies and measures to stabilize economic growth. The province recorded fast industrial growth and steady investment growth in the first quarter, laying a solid foundation for sound economic growth for the whole year,” said the Yunnan Provincial Bureau of Statistics in an announcement posted on its website.

During the first quarter, Guizhou realized a 10.1 percent year-on-year growth in the value-added of industrial enterprises above the designated size, which refers to industrial enterprises with annual revenue from principal business of 20 million yuan ($2.89 million) and above.

“The double-digit growth mainly benefited from steady growth in the coal, electric power and tobacco industries, in addition to rapid growth in emerging industries such as electronic information, equipment manufacturing and automotive industries,” said Peng Long, deputy head of the Guizhou Provincial Bureau of Statistics, at a news conference.

“The value-added of the equipment manufacturing industry grew by 24.3 percent in the first quarter from the previous year, demonstrating that the effect of industrial restructuring, transition and upgrading for the whole province has gradually emerged in recent years,” he said.

Besides, the integration of big data and the real economy in the service sector has accelerated in Guizhou. For service sector enterprises above designated size in the province, operating income of internet companies and relevant firms increased by 134.5 percent year-on-year during the first two months of 2019.

“China is continuously launching a series of policies to increase efficient investment and household consumption and has implemented tax and fee cuts. A combination of these measures has boosted market confidence,” said Peng.

During the process of transition, emerging industries have demonstrated a continuous force to promote steady economic growth. Official data show that financial, information and technology service industries now contribute to over 60 percent of GDP growth in Beijing.

The Mastercard Caixin BBD New Economy Index rose to 28.6 in April, which means inputs for the new economy accounted for 28.6 percent of the overall economic input.