Primary economic indicators show a slowdown on par with last year. However, on analysis of industrial production for 2012's second quarter, there are signs of economic stabilisation and recovery, reported Dongguan Daily on Wednesday 20th June.
In the first quarter of 2012, Dongguan attained a GDP of 101.45 billion RMB, a 1.3% growth over the same period last year. Specifically, the added value of secondary industries was 47.74 billion RMB with a growth rate equal to the same period last year. Tertiary industries increased values by 53.26 billion RMB, a 2.6% growth.
Between January and May, overall growth slowed, but total fixed assets investment in Dongguan climbed to 34.76 billion RMB, a 5% growth over the same period last year. Industrial investments of 10.31 billion RMB are a 2.7% growth, and real estate development investments of 12.97 billion RMB are a 7.6% growth.
From January to May, retail sales in Dongguan have totalled 55.32 billion RMB which is a rise of 10.6%. General consumer price levels have risen by 4.3%, among which foodstuff prices rose by 11.2%, which alone contributed to a 3.5 % increase in the CPI.
Although Dongguan's overall growth in the first five months has retracted, it hasn't yet affected fiscal and tax revenues. Fiscal revenues rooted in Dongguan are 34.92 billion RMB, with general budgeted revenue up by 11.7% at 14.47 billion RMB.
Despite Dongguan's economy facing many pressures, there are an increasing number of positive factors. According to a government survey of 200 key enterprises conducted in April, both general output and new orders for most of the enterprises improved. 84% equalled or exceeded product production quantities when compared with March. The city has also seen an increased demand for loans. By the end of May, the city's total loans in RMB registered a growth of 1.5% over April, and a 5.9 % growth since the beginning of the year.
Meanwhile, Dongguan's manufacturing industry remains highly competitive. From January to April, despite facing a sluggish international market, exports were 0.4% higher than that of
Authorities expected that Dongguan's economy would remain weak in the first half of 2012. However, with higher growth rates in the second quarter, it is predicted that the stabilising economy is recovering and will continue to steadily climb higher. This year, Dongguan is likely to continue facing difficulties in achieving the 8% economic growth rate, but sources say the target is attainable.
Edited and translated by Stefanie Tan
Revised by native speaker Sev Pischl