Guangdong stays above average in Q3

Guangdong’s economy showed resilience in Q3, outperforming the national average, as it has done all year. GDP of RMB 771.192 billion for the year to end-September was up 6.4% YoY, only 0.1 percentage points slower than the first six months of the year. The Q3 number of 6.3% was well above the national 6.0%.

Driving this growth was the services industry. Manufacturing (+4.6%) and agriculture/mining (+3.8%) were stable, but tertiary output (services) was up a strong 7.9%. 

Even better was the outperformance in manufacturing of the private sector, which grew by 7.1%. This was primarily driven by consumer electronics, up 7.5%, and the electrical machinery and equipment manufacturing industry, up 8.2%. Smaller but more promising industries stood out for surging growth: new energy vehicles jumped 76.0%; EMUs (trains) were up 66.7%; and 3D printing equipment soared by 270.8%

Fixed-asset investment continued to grow strongly, up 11.3% in the first three quarters, with infrastructure investment leading at +23.7%. The Guangzhou-Shenzhen-Dongguan Intercity Railway, which opens on November 1, was a key part of this growth.

Retail sales were up 7.8%, the highest growth rate since the beginning of this year. Sales of consumer upgraded goods grew rapidly. 

Trade continued to soften. Exports stayed in positive territory, but slower, at +2.1% YoY growth. Imports fell, but the -4.7% number was slightly better than the previous -5.1%.

Unemployment was 2.16%, down 0.26 percentage points YoY, while per capita disposable income rose 8.7% to RMB 30,755.

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