TMTPOST – Guangzhou, the capital of China’s southern province Guangdong, saw its gross domestic product (GDP) growth slow to 2% in the first three quarters of 2024, according to data released by Guangzhou Statistics Bureau on Saturday.

Of all cities in China, Guangzhou recorded the lowest growth rate. Haikou, the capital of Hainan province, and Kunming, the capital of Yunnan province with tourism being its pillar industry, reported a 3.1% GDP increase and 3.0% increase, respectively. The three provincial capitals were the worst performing cities across China. The Chinese government set economic growth target for 2024 at around 5% in early March. 

The GDP of Guangzhou’s primary sector amounted to 21.728 billion yuan in the first nine months, down 2.6% year over year. Its secondary sector grew by a minimal 1.1% while the tertiary sector expanded by 2.4% year over year.

Guanghzhou Statistics Bureau attributed the poor performance of the primary sector, which includes farming, logging, fishing, forestry and mining, to lengthy rainy weather during the period. Of major farm products, lycheei’s production value fell 48.6% year over year while that of grain and vegetables grew steadily by 3.6% and 0.4% year over year.    

Of the city’s secondary sector, industrial value added of enterprises above a designated size plummeted by 2.2%. The automotive industry in the city saw its industrial value added plummeted by 17.4% year over year, indicating the big challenge of transitioning from traditional gas cars to electric vehicles.   

However, Guangzhou Statistical Bureau listed many highlights on its website, against the background of the slowing municipal economy. In the first eight months, the operating income of service enterprises above a designated scale in the city increased by 7.4% year-on-year. The operating income of information software and information technology services, as well as technology promotion and application services, grew by 6.3% and 18.2% respectively. The city's comprehensive industrial services continue to improve, with the operating income of production service industries such as advertising, human resources services, intellectual property services, and exhibition services up by 18.5%, 14.9%, 11.2%, and 7.7% respectively. The potential for service consumption was unleashed, with the operating income of large-scale cultural and artistic industries growing by 39.2% driven by the booming performing arts market, according to Guangzhou Statistical Bureau.

The past summer season saw a tourism boom, according to the municipal statistical agency. Travel agencies and related services as well as passenger ticketing agencies grew by 15.6% and 37.5% respectively. The extension of content consumption scenarios has led to increases in operating income for related industries such as recording production, film and television program production, digital content services, and publishing by 73.8%, 31.6%, 26.8%, and 10.7% respectively. With the additional boost from the Paris Olympic Games fervor during the summer, the sports industry in the city achieved a 7.8% increase in operating income in the first eight months.