Shenzhen economy maintains steady growth

THE economy in Shenzhen continues to grow at a steady pace amid the global economic slowdown thanks to the city’s competitive edge brought about by relying on independent innovation and implementing the policy of upgrading industrial structures.

Exports, investment and consumption all recorded growth in the first 10 months, according to statistics released by the municipal statistics bureau yesterday. The electronic information industry, new investment opportunities related to the 2011 Summer Universiade and new types of consumption contributed much to boost the economy, bureau officials said.

The added value realized by industrial enterprises above a designated size in the January-October period had reached 287.30 billion yuan (US$42 billion), an increase of 11.9 percent over the same period last year, statistics show. The electronics information industry continued to take the lead with its total added value hitting 127.70 million yuan, an increase of 16.9 percent year on year and 5 percentage points higher than the city’s average growth rate.

“The impact on Shenzhen’s economy brought about by the global financial crisis cannot be underestimated,” said Wei Dazhi, head of the industrial economics research center at Shenzhen University. Against the backdrop of the downturn of the world’s economy, exports in Shenzhen, which relies heavily on an export-oriented economy, is facing a tougher challenge. Statistics released by Shenzhen Customs show the city’s total foreign trade volume reached 249.19 billion yuan in the first 10 months, up 8.3 percent year on year.

Affected by factors such as oil price hikes, the growth rate of the city’s transport industry had seen a slowdown. Container throughput at Shenzhen ports in the first 10 months reached 18 million TEUs (20-foot equivalent units), up 4.2 percent year on year.

Domestic consumption was playing a bigger role in driving up Shenzhen’s economic growth, according to officials with the statistics bureau. In the first 10 months, the city realized 186.37 billion yuan in the total retail sales of consumer goods, up 18.7 percent over a year ago. Experts say apart from stable commodity prices, the high consumption power of Shenzhen residents is another crucial factor in helping Shenzhen weather the financial crisis and maintain a healthy economic growth. (Eunice Kang)