Guangdong GDP Surpasses US$1tn

Guangdong GDP Surpasses US$1tn

Staff Reporter

2014-01-04

The GDP of China’s Guangdong province is estimated to have grown 8.5% to over 6 trillion yuan (US$1 trillion), in 2013, becoming the sixth province in the nation to hit this mark.Guangdong GDP Surpasses US$1tnIf this is the case, Guangdong would rank as the 16th largest economy worldwide, were it a nation, trailing Mexico in 14th place with US$1.18 trillion and South Korea in 15th place with US$1.13 trillion.

Some experts, however, attribute the achievement partly to the revaluation of the renminbi, pointing to the unbalanced development of the provincial economy, as the four major cities of Guangzhou, Shenzhen, Foshan, and Dongguan accounted for 70% of its GDP in 2013 and its per capita GDP ranked among the lowest nationwide, according to the Shanghai-based China Business News. The province’s per capita GDP amounted to only US$8,913 in 2012, compared with US$22,590 in South Korea and equal to that of Romania, whose GDP ranked 52nd place worldwide.

In 2013, Guangdong’s exports, a key element of its economy, grew 7.5% to over US$1 trillion, shy of the 8% growth target but still an exceptional performance, in view of the volatile global market.

In 2013, the province’s industrial infrastructure was further improved, as the added value of the service industry topped 3 trillion yuan (US$495.8 billion), surpassing that of secondary industries and replacing them to become the province’s foremost economic sector.

The private sector gained an even more important role in the economy in 2013, according to the China Business News, when the growth rate of its investments almost doubled that of fixed capital formation.

Thanks to e-commerce, total retail sales topped 2.55 trillion yuan (US$421.4 billion) in 2013.

Hu Gang, professor at the School of Management at Jinan University, remarked that it’s nothing extraordinary for Guangdong’s GDP to surpass US$1 trillion, as the province has over 100 million people, double the population of South Korea.

In addition, said Hu, the province still relies heavily on labor-intensive industries and is still engaged in an uphill battle in terms of industrial upgrading. It lags far behind South Korea and Taiwan in innovation and doesn’t have large numbers of foreign enterprises to bolster its economy as they do, with the possible exception of Shenzhen.

Guangdong is stepping up its effort to upgrade its economy, according Zhu Xiaodan, the governor, who noted at a press conference on Nov 22 last year that the share of consumption for the province’s economy had reached 54.4%, up from 45.5% in 2007, that of investment reached 43.7% up from 22.8%, and that of exports had reached 31.9% up from 31.7%.

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: