Shenzhen accelerates economic recovery as more Chinese cities walk out of the shadow of Omicron
Published: Jun 01, 2022 01:22 AM
Shenzhen Photo: VCG
Shenzhen Photo: VCG

The Chinese tech hub of Shenzhen has experienced accelerated economic growth in April with faster industrial output, increased scale of fixed investment and a steadily recovery in consumption, official data showed on Tuesday as more Chinese cities walk out of the shadow of Omicron.

Shenzhen has recorded an accelerated economic recovery after it emerged from the COVID-19 outbreak in late March by coordinating economic social development and epidemic prevention, the Statistics Bureau of Shenzhen announced on its official WeChat account on Tuesday.

The added value of industrial firms has grown by 4.2 percent from a year earlier, from January to April, up 1.9 percentage points from Q1 boosted by a booming output in the auto industry and high tech products, data showed.

The auto manufacturing industry in Shenzhen grew 96.1 percent from January to April. The output of new energy vehicles was up 187.5 percent and that of charging piles was up 162.5 percent in the period. The production of smart phones also soared 72.9 percent.

From January to April, Shenzhen's fixed asset investment increased by 8.9 percent year-on-year while the consumer confidence was further restored with a momentum for consumption upgrading and quick expansion of online retail.

The retail sales of telecommunications equipment and jewelry has grown by 32.8 percent and 10.3 percent respectively while the online sales soared 15.6 percent in the first four months of the year.

To further promote consumption. the city announced on May 26 an additional quota of 20,000 car plates and subsidies to lift vehicle sales, in line with the central government's call to boost consumption and shore up the economy.

The economic recovery of Shenzhen has injected economic confidence nationwide and comes as the situation of the COVID-19 epidemic in Beijing and Shanghai continues to improve and a nationwide work resumption kicks off, experts said.

Starting from Wednesday, Shanghai's outdoor A-level tourism sites will reopen to the public in an orderly way, allowing a maximum visitor capacity of no more than 75 percent.

Malls, supermarkets, convenience stores, pharmacies and other shops will also resume on-site business.

As China's major manufacturing hubs, including Shanghai, accelerated the pace of work resumption, depressed production and demand will recover, stabilizing industrial and supply chains in the Yangtze River Delta region, Cong Yi, professor at the Tianjin University of Finance and Economics, told the Global Times on Tuesday.

"China's economy is likely to rebound strongly in June as the resumption of work accelerates," Cong said, expecting the overall economic growth in the second quarter to be at a range between 2 and 4 percent on a yearly basis.