Shenzhen’s GDP growth in 2018 hit RMB2.4 trillion, beating Guangzhou for the second consecutive year, according to a government report released during the seventh session of the National People’s Congress in Shenzhen on January 18.
According to the report, Shenzhen’s GDP enjoyed a growth rate of 7.5 percent last year, with its overall economic size ranking among the top five cities in Asia, though the report did not specify the names of the remaining four cities. In comparison, Guangzhou’s GDP grew by around 6.5 percent to RMB2.3 trillion in 2018.
It may not be surprising that the trade-centric provincial capital was outperformed again by tech-driven Shenzhen, as Guangzhou was hit hard by the back-and-forth trade war between China and the United States.
Meanwhile, both cities failed to reach their projected growth targets set at the beginning of 2018, with Shenzhen falling short by 0.5 percent and Guangzhou by 1 percent. The two cities have also lowered growth targets for 2019, with a 7 percent for projection set for Shenzhen and 6-6.5 percent for Guangzhou.
According to South China Morning Post, as of January 15, 20 cities in China had released growth targets for 2019, with 12 of them lowering their original aims, six striving to maintain the same growth as last year and only two projecting for higher growth.
This is another sign that China's economy will continue to slow down in the coming year. The slowdown has already affected global companies with a large customer base in China, including Apple, which previously lowered its fiscal revenue projections for the first fiscal quarter ending December 31 from somewhere between USD89-93 billion to USD84 billion.
[Cover image via Sohu.com]