Sunday, June 4, 2023
HomeEconomyChina's wealthy provinces grow slower than national economy amid coronavirus restrictions

China's wealthy provinces grow slower than national economy amid coronavirus restrictions

BEIJING (Reuters) – Some of China’s wealthiest regions reported slower growth than the national economy in the first three quarters of the year as COVID-19 containment measures disrupted factories and consumer activity.

Gross domestic product (GDP) in the world’s second-largest economy rose 3.0% year-on-year in January-September, but provincial data as of Wednesday showed four 10 Largest regional economies: Guangdong, Jiangsu and Sichuan provinces and Shanghai.

Ongoing stringent COVID-19 control measures show that more prosperous regions are struggling to help drive the country’s recovery.

Southern economic powerhouse Guangdong and eastern Jiangsu each grew 2.3% . Growth in Sichuan slowed to 1.5% from 2.8% in the first half 2022.

Guangdong and Sichuan were hit hard by virus containment in the third quarter, with tech hub Shenzhen and southwestern metropolis Chengdu hit by restrictions and lockdowns in September.

China’s capital, Beijing, managed a barely 0.8% growth in the first three quarters.

Premier Li Keqiang in July urged major provinces to step up efforts to keep their economies operating within a reasonable range, as they are crucial to attracting migrant workers and supporting their incomes.

As the economy will fail to achieve the government’s 2022 GDP growth target of around 5.5%, China’s State Council has asked major provinces to work hard to achieve the target. According to a Reuters survey, National GDP growth is expected to slow to 3.2% this year, one of the worst performances in nearly half a century. Their GDP growth contracted in the first three quarters, albeit at a slower pace than in the previous six months, despite efforts to emerge from the pain of lockdowns earlier this year.

The GDP of the tropical southern province Hainan fell 0.5% in the first three quarters, reversing a 1.6% gain in the first half of the year, as the island’s main tourist center, Sanya, fell in 8 Locked down tens of thousands of tourists for the month.

Growth remains a priority, policymakers said on Wednesday, vowing to press ahead with reforms to ease fears that ideology may take precedence as Xi begins a new term of leadership and continues contain the new crown pneumonia epidemic.



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