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CHINA> Regional
Shenzhen economy growing despite threats
(Xinhua)
Updated: 2008-07-24 13:37

BEIJING -- Shenzhen's economy grew steadily in the first half year, although international and domestic markets are encountering challenges, Deng Ping, director-general of the municipal statistics bureau told a press conference Wednesday.

“Shenzhen’s GDP reached 353.288 billion yuan (51.80 billion U.S. dollars) in the past six months, an increase of 10.5 percent compared with the same period last year,” Deng said. “The city’s economy is developing in a positive way, although we are still facing some difficulties and problems as the international economic environment is dim this year.”

Statistics show that Shenzhen’s consumption market has increased quickly in the first half of the year, with 108.049 billion yuan of total retail sales of consumer goods, an increase of 18.2 percent.

The gross value of foreign trade reached US$ 139.175 billion, an increase of 9 percent compared with the same period last year, according to Shenzhen Customs statistics.

Shenzhen’s consumer price index (CPI) in the past six months increased by 7.3 percent compared with the same period last year mainly because of the increasing cost of food, especially meat and vegetable oil, which increased by 38.2 percent and 39.1 percent respectively.

Urban fixed-asset investment growth also increased slightly. Total fixed-asset investment reached 57.523 billion yuan, an increase of 6.9 percent compared with the same period last year.

However, Deng said the most obvious pressure facing Shenzhen was the dollar’s depreciation and RMB’s appreciation, which had caused Shenzhen’s industrial production to fall by 7 percent.

“Between 300 and 400 foreign-funded enterprises in Shenzhen moved out of the city in the past six months because of various reasons, and some of them closed down,” said Deng.

The total added-value of major industrial enterprises reached 156.091 billion yuan, an increase of 10.3 percent. However, the industrial value-added growth rate declined in the first half year, to its lowest rate in 20 years, although it is expected to increase again later in the year, especially from the third quarter, according to Deng.

(Source: Shenzhen Daily)

 

 

 

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