Overview of Guangzhou (2016)
Release time: March 1, 2016
Taking a Lead under the New Normal and Seeking New Development
--Economic operation of Guangzhou in 2015
Facing the complicated and severe domestic and international environment, Guangzhou has initiatively adapted to the new normal of economic development, and stuck to the general keynote of maintaining stable growth and seeking progress since 2015. The city spared no efforts in stabilizing growth, promoting reform, readjusting economic structure and improving people’s livelihood, creating a good situation with stable economic and social development and improved growth quality.
After preliminary calculation and verification by the Statistics Bureau of Guangdong Province, the regional gross domestic production (GDP) reached RMB1.810041 trillion, up 8.5% year-on-year, higher than the national average (6.9%) and the provincial average (8.0%), 0.1, 0.3 and 0.9 percentage point higher than that of the first three quarters (8.3%), the first half year (8.1%) and the first quarter (7.5%), showing a uptrend. The primary, secondary and tertiary industries completed added value of RMB22.809 billion, RMB578.621 billion and RMB1.208611 trillion, up 2.5%, 6.8% and 9.5%, respectively. The industrial structure has been further optimized, with the proportion of the primary, secondary and tertiary industries at 1.26：31.97：66.77. The proportion of the added value of the tertiary industry increased by 1.55 percentage points against last year, contributing to 70.6% of the economic growth, exceeding 70% for the first time.
I. Agriculture and industry maintained stable development while the tertiary industry maintaining steady to rapid growth from the sides of consumption, investment and export supply
The agricultural production remained steady. In 2015, Guangzhou’s agricultural added value reached RMB24.689 billion, up 2.8%. The city witnessed steady development of modern agriculture, establishment of 124 newly increased farmer professional cooperatives and six demonstration cooperatives. The city successfully completed construction of six famous towns and 86 famous villages. The municipal government funded projects of the third batch, totaling 47 beautiful countryside pilots, have been completed.
The industrial production improved quality while maintaining steady growth. The city has implemented the three-year action plan on the industrial transform and upgrade, and set up the industrial development fund to support the high-end and smart development and industrial technology renovation such as replacing manual work with machine. In 2015, the total industrial output value above the statistics threshold reached RMB1.871236 trillion, up 6.4% year-on-year. And the annual growth maintained steady and uptrend. The pillar industries boosted development. The three pillar industries completed total output value of RMB911.925 billion, up 8.7%, 2.3 percentage points higher than the average of the city. The automobile manufacturing kept the recovery trend and grew by 6.0%. The automobile production and distribution grew by 12.0% and 14.9%, respectively, 8.7 percentage points and 10.2 percentage points higher than the national average. The electric product manufacturing industry maintained a good growth trend, reaching 20.6%. The industrial structure has been optimized towards high end, and the advanced manufacturing and high-tech manufacturing maintained a growth rate higher than the overall industry and played a leading role. In 201, the advanced manufacturing and high-tech manufacturing have grown the added value by 8.8% and 19.4%, respectively, 1.6 and 12.2 percentage points higher than the industrial added value above the statistics threshold. The high-tech manufacturing accounted for 11.7% of the added value of the industry above statistics threshold, an increase of 0.1 percentage point year-on-year.
The modern service industry showed a good development trend. The city’s international transport hub function was strengthened. In 2015, as many as 55.2094 million passengers traveled through Baiyun International Airport, ranking the third in China and the cargo traffic reached 2.0017 million tons. Guangzhou Port cargo throughput reached 520 million tons, and the container throughput 17.59 million TEUs. The passenger turnover, passenger traffic, cargo turnover and traffic grew by 9.0%, 8.3%, 4.2% and 3.9% year-on-year, respectively. The online shopping has driven the express delivery to develop rapidly and this sector accounted for 90% of the total revenue of the postal services of the city. The express delivery business has grown by 43.8% year-on-year. Guangzhou received 56.5795 million overnight visitors, up 6.2% year-on-year and the total tourism revenue reached RMB287.218 billion, up 13.9% year-on-year. The modern financial service system construction has been strengthened. The added value of the financial industry grew by 14.2%, ranking the top among all industries. At the end of December, the domestic and foreign currency deposits and loans of the financial institutions have been increased and the balance of the deposits and loans were RMB4.284367 trillion and RMB2.729616 trillion, up 12.7% and 12.4% respectively. The mid-term and long-term loans grew by 23.6%, showing a good growth trend. The new types of business of the financial industry showed great development momentum. The city saw 20 newly licensed financial institutions, 110 enterprises listed at the New Third Board and more than 200 Internet financial enterprises established and introduced.
II. From the aspect of consumption, investment and foreign demands, the investment demand has grown rapidly, the consumption demand has maintained exuberant while breakthroughs have been made in the foreign trade.
The investment demand has grown rapidly. Efforts have been made to promote the construction of major projects, enlarge the project construction and introduction, and emphasize promotion of effective investment. In 2015, Guangzhou has completed the fixed assets investment of RMB540.595 billion, up 10.6% year-on-year. A total of 156 major projects of the city completed investment of RMB120.9 billion. Guangzhou has witnessed vigorous growth of investment in the industrial technological renovation, active private investment and rapid growth of investment in the real estate development. The investment in industrial technological renovation has grown by 51.7%, driving the industrial investment to grow rapidly. The industrial investment totaled RMB75.478 billion, up 10.2%. The private investment and real estate development investment reached RMB239.776 billion and RMB213.759 billion, up 35.8% and 17.7%, 25.2 and 7.1 percentage points higher than the city’s average. The investment in the automobile manufacturing of the three pillar industries grew by 17.5% while investment in the leasing and commercial services, financial industry, information transmission, software and information technology services and other producer services has maintained rapid growth, up 3.1 times, 19.9% and 17.7% respectively.
The consumption demand has remained brisk. Guangzhou has promoted the upgrade and renovation of major business districts, consolidated and promoted the wholesale markets, department stores and other traditional business modes, and actively fostered the information, culture, healthcare, tourism and other new hotspots and modes of consumption. The consumption concentration capability has been improved. In 2015, Guangzhou achieved the total retail sales of consumer goods RMB793.296 billion, up 11.0%, higher than the national average (10.7%) and the provincial average (10.1%). The wholesale and retailing, hotel and catering industries grew by 11.2% and 9.8%. The online shopping and goods related to information consumption have grown rapidly. The retail sales of online stores above the threshold grew by 62.1%, driving the retail sales of consumer goods to grow by about 2.8 percentage points. The retail sales of communication equipment grew by 43.5%.
Breakthroughs have been made in the foreign trade. Relying on the policy advantages of the cross-border e-commerce pilot and free trade zone experiment zone, Guangzhou has actively developed the cross-border e-commerce, service outsourcing, bonded logistics and other new modes and realized innovative development in the foreign trade. In 2015, Guangzhou completed total exports and exports of RMB830.641 billion, up 3.5%, higher than the national average (-7.0%) and the provincial average (-3.9%). The exports totaled RMB503.467 billion, up 12.7%, higher than the national average (-1.8% and the provincial average (0.8%). The imports totaled RMB327.174 billion, down 8.0%, with the decreasing rate lower than the national average (-13.2%) and the provincial average (-10.8%). The cross-border e-commerce import and export amounted to RMB6.75 billion, up 3.7 times, ranking the top of the pilot cities of China. Today Guangzhou has 777 cross-border e-commerce enterprises, including 630 e-commerce enterprises, 112 logistics enterprises, and 35 payment enterprises, and 11 cross-border e-commerce industrial parks with investment of RMB50 million and above which have been completed or under construction.
III. From the aspect of development momentum, the measures of deepening reform has catalyzed new momentum, strengthened the private economy and improved the innovation driving capacity.
The measures of deepening reform have catalyzed new momentum. The action of deepening reform and streamlining administration and delegating power to the lower levels further released the market vitality. First, the business registration system reform promoted the public entrepreneurship. The newly registered enterprises have increased rapidly. In 2015, the new registered market players increased by 14.9%; of that, the newly registered domestic-funded market players of the information service sector increased by 99.9%. Second, the micro- and small enterprises released huge energy. The tax and fee reduction policy functioned and offered more financial support to real economy and the micro- and small enterprises have been active. The industrial output value of the micro- and small enterprises above the statistics threshold reached RMB442.984 billion, up 10.5%, 4.1 percentage points higher than that of the industries above the statistics threshold, and accounting for 23.67% of the industries above the statistics threshold. Third, the free trade zone pilot policy showed obvious effect. Nansha Zone of Guangdong Pilot Free Trade Zone started operation and brought along new opportunities for the mechanism innovation, development and opening up of the financial industry and trade and other fields. The policy effect has been initially released. The city has 5,790 new market players with registered capital of RMB69.73 billion.
The private economy vitality strengthened. In 2015 the private investment increased by 35.8%, 25.2 percentage points higher than the total social investment; and the proportion reached 44.4%, an increase of 8.3 percentage points year-on-year. The private industrial output value above the statistics threshold increased by 8.2%, 1.8 percentage points higher than the industries above the statistics threshold and the proportion reached 23.84%.
The innovation driving capacity improved. The fiscal input and incubator double growth plan has been implemented, and the leading function of the scientific and technological innovation has been strengthened. In 2015, the output value of high-tech products above the statistics threshold grew by 8.2%, faster than the average of the industry (6.4%), and accounting for 45.0% of the industries above the statistics threshold, up 1.0 percentage point year-on-year, and driving the industries above the statistics threshold to grow by 3.6 percentage points. The data shows that the high-tech industry has a strong driving force. A total of 20,087 invention patent applications were submitted, and 6,626 invention patents were granted, up 37.7% and 44.4%, respectively.
IV. From the aspects of quality and benefits, the fiscal revenue grew rapidly, the service enterprises saw rapid growth of profits, the industrial enterprises turned losses into gains and the fiscal revenue and expenditures grew relatively rapidly. In 2015, the general public budget revenue reached RMB134.909 billion, up 8.5%. Of that, the tax revenue reached RMB105.599 billion, up 6.0%. The value-added tax, business tax, corporate income tax and personal income tax increased by 6.1%, 6.2%, 7.7% and 19.1%, respectively. The general public budget expenditures reached RMB172.815 billion, up 20.3%.
The service enterprises enjoyed rapid growth of profits. From January to November, the operating profits of service enterprises above the statistics threshold grew by 36.1%. Of that, the commercial service industry grew by 31.0%, the software and information technology service industry grew by 10.5%, and the transportation, warehousing and postal services turned losses into gains. The abovementioned three industries in combination accounted for more than 70% of the total operating profits.
The industrial enterprises turned losses into gains and the scale of losses narrowed. From January to November, the industrial enterprises above the statistics threshold achieved total profits of RMB95.634 billion, up 1.0% year-on-year. The scale of loss-incurring enterprises reached 20.10%, 2.85 percentage points lower than the first three quarters. The automobile manufacturing, chemical raw materials and chemicals manufacturing, electricity and heating production and supply industries realized more than RMB10 b
illion of profits.
V. From the aspect of people’s livelihood improvement, the consumer price and employment maintained stable, the input in people’s livelihood continuously increased and the resident income increased steadily.
The consumer price maintained stable. In 2015 the CPI increased by 1.7% year-on-year, the lowest since 2010. The consumer goods prices and the service prices grew by 0.5% and 4.3% respectively. The PPI and IPI declined by 3.2% and 6.3% respectively.
The employment situation remained stable. The city has taken measures to improve employment. In 2015, the newly increased urban employed persons reached 274,700 and re-employed persons 180,400, exceeding the annual tasks. The registered urban unemployment reached 2.2%, being controlled under the target 3.5%.
The input in people’s livelihood continuously increased. In 2015, the fiscal expenditures of the general public budget expenditures strongly guaranteed expenditures for people’s livelihood. The expenditures on education, social security and employment, medical service and family plan reached RMB28.941 billion, RMB 20.343billion and RMB13.387 billion, up 26.4%, 36.1% and 15.1%, respectively, accounting for 36.26% of the general public budget expenditures in combination, an increase of 1.80 percentage points year-on-year.
The resident income increased steadily. According to the urban-rural integrated household survey, the per capita disposable income of the permanent residents of the urban area and the rural area reached RMB46,735 and RMB19,323, up 8.8% and 9.4% year-on-year, maintaining synchronous with the local GDP growth.
In 2015, Guangzhou has realized steady and sound economic growth, with optimized structure of the economic growth and improved growth quality and benefits. The new industries, new business types and new modes showed a strengthened momentum of boosting to the economic growth. The planned goals of the 12th Five-Year Plan have been fulfilled, laying a solid foundation for Guangzhou’s development in the 13th Five-Year Plan period. Guangzhou made hard-won achievements in the economic and social development. This is the result that the CPC Guangzhou Municipal Committee and Guangzhou municipal government have achieved by initiatively adapting to and leading the new normal, making decisions in a scientific way, sticking to making progresses, and accelerating the innovation driven development and emphasizing implementation. While enjoying the achievements, we must be aware of the complicated international environment, and that the domestic structural adjustment and transform and upgrade have come to the critical stage. Guangzhou is facing arduous tasks and some difficulties and challenges in deepening reform. The traditional industries accelerated adjustment and the emerging industries are still under incubation. The city is still facing high pressure of economic downturn.
The year 2016 sees start of the implementation of the 13th Five-Year Plan, and mark the decisive stage of building a moderately prosperous society. Doing a good job in the economic and social development is of profound significance for maintaining steady and sound economic growth. In the following stage, Guangzhou should continuously implement the decisions and deployments of the central government, the provincial government and the municipal government, firmly erect the innovation, coordination, green development, opening up and sharing development concepts, center on improving the development quality and benefits, highlight the leading role of value innovation, give priority to the supply side structural reform, accelerate structural adjustment, transform and upgrade, support the real entity development, enhance the mass entrepreneurship, actively foster new power sources and growth poles, accelerate steps of building Guangzhou into a international shipping center, logistics center, trading center, modern financial service system and national innovation central city so as to boost Guangzhou’s efforts of building a central city and realize steady and sound economic growth.
Source: Translate from Invest Guangzhou, March 1, 2016