On October 24, I had the opportunity to interview officials from the Hangzhou Municipal Bureau of Statistics and the National Bureau of Statistics’ Hangzhou Survey Team regarding the economic performance of Hangzhou in the first three quarters of 2023. According to their report, the city achieved a Gross Domestic Product (GDP) of 15,215 billion yuan, marking a year-on-year growth of 4.5% when adjusted for constant prices.
Breaking it down by industry, the primary sector contributed an added value of 231 billion yuan, growing by 3.6%. The secondary sector showed an added value of 4,212 billion yuan, increasing by 4.1%, while the tertiary sector reached an added value of 10,772 billion yuan, reflecting a growth of 4.6%.
In terms of industrial performance, Hangzhou is witnessing a steady recovery, particularly in emerging industries. The city’s industrial added value from large-scale enterprises reached 3,252 billion yuan, with a growth of 4.2%. Notably, this marks a 0.4 percentage point increase from January to August 2023, and a 0.2 percentage point rise compared to the first half of the year.
When asked about the specific sectors within industry, growth rates were impressive in several fields. The manufacturing of computer communication and other electronic equipment, electrical machinery and equipment, and automobile manufacturing grew by 8.4%, 9.2%, and 18.1% respectively. Additionally, sectors that represent new momentum, such as high-tech industries, strategic emerging industries, and equipment manufacturing saw their added values increase by 5.0%, 6.0%, and 6.1%, all outpacing the overall industrial growth.
Turning to products, output in Hangzhou’s new energy vehicles surged by 17.1%, industrial control computers and systems shot up by 32.3%, and integrated circuit products experienced an astonishing increase of 55.2%.
The service sector in Hangzhou also demonstrated robust growth during these quarters. Data shows that the revenue from large-scale service industries (excluding wholesale and retail, accommodation, catering, finance, and real estate) reached 13,106 billion yuan over the first eight months, a growth of 6.5%. Within this sector, the information transmission, software, and IT services grew by 7.4%, while the leasing and business services sector expanded by 12.4%.
Exports have played a vital role in the city’s economic momentum. In the first three quarters, Hangzhou’s exports totaled 4,333 billion yuan, representing an 8.5% increase. Compared to January through August, this marks a 0.3 percentage point rise, and a 2.9 percentage point increase from the first half of the year. Breaking it down, exports of electromechanical products reached 2,052 billion yuan, growing by 10.3% and accounting for 47.4% of total exports. Private enterprises contributed significantly as well, exporting 3,267 billion yuan, which is a 7.4% increase and constitutes 75.4% of the total export share.
Moreover, fixed asset investment in Hangzhou rose by 0.1% year-on-year, reflecting a 1.7 percentage point recovery compared to the figures from January to August. Notably, investments in the manufacturing sector increased by 2.8%, with specialized equipment and automobile manufacturing investments growing by 15.9% and 21.1%, respectively.
On the consumer front, retail sales of consumer goods reached 5,581 billion yuan from January to September, marking a year-on-year increase of 2.0%, which represents a 1.0 percentage point recovery from the previous months. Specifically, retail sales in the home appliance and audio-visual equipment category surged by 6.7%, significantly bolstered by policies promoting the replacement of old appliances, while communication equipment saw a remarkable 30.8% growth.
As we conclude this discussion, it’s clear that Hangzhou’s economy is on a positive trajectory, showcasing resilience through diversified growth across various sectors.
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