Economy of Guangdong

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Guangzhou is the capital of the province of Guangdong. Guangzhou Twin Towers.jpg
Guangzhou is the capital of the province of Guangdong.
Shenzhen is one of the Special economic zones of China. Commercial area of futian to east2020.jpg
Shenzhen is one of the Special economic zones of China.

The economy of Guangdong is one of the most prosperous in China. Guangdong is located in southern China, bordering on Fujian Province to the east, Hunan Province to the north, Guangxi Autonomous Region to the west and the special administrative regions of Hong Kong and Macau to the south. It is also the largest economy of a sub-national entity in terms of GDP (almost US$2.0 trillion [1] as of 2021) in all of Asia and 3rd largest sub-national entity in the world.

Contents

In 2021, the gross regional product (GRP) is about $1.95 trillion, [2] with its per capita GDP of 98,700 RMB ($15,570 in nominal and $ 23,598 in PPP). [3] Guangdong has been the largest province by GDP since 1989 in Mainland China. [4] In 2021, Guangdong's GDP was slightly larger than South Korea, the world's tenth largest economy. [5] Guangdong's GDP by nominal is greater than the GDPs of all other BRICS states, except India. [6]

By Purchasing power parity (PPP) term, as of 2021, Guangdong's economy has a gross regional product (GRP) of $2.98 trillion, [7] ranking between the United Kingdom and Italy with a GDP of $3.34 trillion and US$ $2.71 trillion respectively, the 10th and 11th largest in the world respectively. [8]

Overview

This is a trend of official estimates [9] of the gross domestic product of the Province of Guangdong:

Historical GDP of Guangdong Province for 1978 –present (SNA2008) [10]
(purchasing power parity of Chinese Yuan, as Int'l.dollar based on IMF WEO April 2020 [11] )
yearGDPGDP per capita (GDPpc)
based on mid-year population 		Reference index
GDP in millionsreal
growth
(%)		GDPpcexchange rate
1 foreign currency to CNY
CNY USD PPP
(Int'l$.)		CNYUSDPPP
(Int'l$.)		USD 1Int'l$. 1
(PPP)
201910,767,1101,560,7903,078,9606.394,17213,65126,9296.89853.497
20189,994,5201,510,3402,856,3906.888,78113,41625,3736.61743.499
20168,085,4911,217,2732,306,1217.574,01611,14321,1116.64233.5061
20157,402,7431,188,5462,085,8098.068,62911,01919,3376.22843.5491
20146,890,1431,121,6621,940,7217.864,49110,49918,1656.14283.5503
20136,345,5441,024,5991,774,0348.559,7569,64916,7066.19323.5769
20125,799,354918,7101,633,2538.254,9738,70915,4826.31253.5508
20115,395,920835,4371,539,27310.051,5237,97714,6986.45883.5055
20104,657,712688,0441,406,90912.445,2846,68913,6786.76953.3106
20093,993,713584,6451,264,8349.739,8905,84012,6336.83103.1575
20083,714,244534,8011,169,14110.437,9925,47011,9596.94513.1769
20073,205,379421,5391,063,17914.933,5624,41411,1327.60403.0149
20062,680,032336,189931,31014.828,7623,6089,9957.97182.8777
20052,272,329277,394794,79914.124,8283,0318,6848.19172.8590
20041,900,561229,625672,69414.821,0322,5417,4448.27682.8253
20031,595,925192,814587,49314.817,9272,1666,5998.27702.7165
20021,360,189164,334504,76512.415,4781,8705,7448.27702.6947
20011,212,659146,509446,56910.513,9521,6865,1388.27702.7155
20001,081,021130,583397,53611.512,8181,5484,7148.27842.7193
1995594,03471,133217,64315.68,1399752,9828.35102.7294
1990155,90332,59491,56811.62,4845191,4594.78321.7026
198557,73819,66241,19118.01,0263497322.93661.4017
198024,96516,66116,69316.64813213221.49841.4955
197818,58511,039-1.0370220-1.6836-

After the communist revolution and until the start of the Deng Xiaoping reforms in 1978, Guangdong was an economic backwater, although a large underground, service-based economy has always existed. Economic development policies encouraged industrial development in the interior provinces which were weakly linked to Guangdong via transportation links. The government policy of economic autarky made Guangdong's access to the ocean irrelevant.[ citation needed ]

Deng Xiaoping's open door policy radically changed the economy of the province as it was able to take advantage of its access to the ocean, proximity to Hong Kong, and historical links to overseas Chinese. Guangdong was one of the first provinces to be authorized by the central government to receive foreign investment. [12] : 148  In addition, until the 1990s when the Chinese taxation system was reformed, the province benefited from the relatively low rate of taxation placed on it by the central government due to its post-Liberation status of being economically backward.[ citation needed ]

Although Shanghai is often cited as evidence of China's success, Guangdong's economic boom demonstrates that China has become a labor-intensive manufacturing economy. Guangdong's economic boom began with the early 1990s and has since spread to neighboring provinces, and also pulled their populations inward. Guangdong is China's largest exporter, as well as its largest importer of goods. [13] Its extensive manufacturing base is largely privately owned, making it less reliant on fixed asset investments than other provinces in China. [13]

The province is now one of the richest in the nation, with the highest GDP among all the provinces, although wage growth has only recently begun to rise due to a large influx of migrant workers from neighboring provinces. In 2021, Guangdong's per capita GDP was 98,700 RMB ($15,570 in nominal and $ 23,598 in PPP). [3]

Guangdong contributes approximately 9% of the total national economic output. [3] Now, it has three of the six Special Economic Zones: Shenzhen, Shantou and Zhuhai. The affluence of Guangdong, however, remains very much concentrated in a handful of cities near the Pearl River Delta. [13]

Recently, more than 7000 factories based in southern Guangdong cities such as Shenzhen and Dongguan has shut due to rapidly falling demand from western consumers, stricter labour and environmental regulations and the global financial crisis. [14] [15]

Economic and Technological Development Zones

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<span class="mw-page-title-main">Shenzhen</span> City in Guangdong, China

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References

  1. ↑ "省十三届人大五次会议开幕 李玉妹主持 王伟中作政府工作报告 李希黄楚平王荣等出席 广东省人民政府门户网站".
  2. ↑ "GLOBALink | China's economic powerhouse Guangdong reports robust GDP growth in 2021". english.news.cn. Retrieved 2022-09-14.
  3. 1 2 3 "Decoding China's 2021 GDP Growth Rate: A Look at Regional Numbers". China Briefing News. 2022-02-07. Retrieved 2022-09-13.
  4. ↑ "省十三届人大五次会议开幕 李玉妹主持 王伟中作政府工作报告 李希黄楚平王荣等出席 广东省人民政府门户网站". www.gd.gov.cn. Retrieved 2022-01-27.
  5. ↑ "GDP (current US$) – Korea, Rep. | Data". data.worldbank.org. Retrieved 2022-09-13.
  6. ↑ "GDP (current US$) – Russian Federation, Brazil, South Africa, India | Data". data.worldbank.org. Retrieved 2022-09-13.
  7. ↑ "Global Wealth PPP Distribution: Who Are The Leaders Of The Global Economy? – Full Size". www.visualcapitalist.com. Retrieved 2022-01-27.
  8. ↑ "GDP, PPP (current international $) – United Kingdom, Italy | Data". data.worldbank.org. Retrieved 2022-09-13.
  9. ↑ official estimates
  10. ↑ China NBS / Bulletin on Reforming Guangdong's GDP Accounting and Data Release System: gdstats.gov.cn (9-Dec-17) (Chinese)
  11. ↑ Purchasing power parity (PPP) for Chinese yuan is estimate according to IMF WEO (October 2017) data; Exchange rate of CN¥ to US$ is according to State Administration of Foreign Exchange, published on China Statistical Yearbook.
  12. ↑ Ang, Yuen Yuen (2016). How China Escaped the Poverty Trap. Cornell University Press. ISBN   978-1-5017-0020-0. JSTOR   10.7591/j.ctt1zgwm1j.
  13. 1 2 3 "Guangdong Province: Economic News and Statistics for Guangdong's Economy". Archived from the original on 2012-05-02. Retrieved 2011-11-01.
  14. ↑ "Guangdong's Factories are Shutting Down". Newsweek . 28 June 2008.
  15. ↑ https://www.google.com/hostednews/ap/article/ALeqM5gssNAVOFZK3RKWh9dBGtMmxhgpOAD95604B00 [ dead link ]
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