Shenzhen passes Guangzhou as highest GDP city in southern China

Shenzhen had the largest economy in southern China’s Guangdong province last year after a new method of calculating gross domestic product saw it overtake local rival and provincial capital Guangzhou.

Shenzhen’s GDP figure for 2016 to more than 2 trillion yuan (US$302 billion) from 1.95 trillion yuan in its initial report. The revision meant that the city’s economy grew 9.1 per cent year on year.

Guangzhou’s GDP figure was also revised up, to 1.98 trillion yuan from 1.95 trillion yuan.

The changes meant that Guangdong province total economic output was revised to 8 trillion yuan (US$1.21 trillion) from 7.4 trillion yuan in 2016. Guangdong GDP is likely over US$1.3 trillion at the end of 2017.

Shenzhen is likely to pass Hong Kong’s $320 billion economy at the end of 2017 or definitely in 2018.

Since 2013, Shenzhen has allocated more than 4 per cent of its annual GDP to R and D, putting it on a par with South Korea and Israel. By contrast, Hong Kong spends about 1 per cent of its GDP on R and D each year.