(Yicai) July 24 -- Guangdong, China's largest provincial economy, posted its fastest first-half gross domestic product growth in three years, supported by strong performance in high-end manufacturing and modern services.

The province's GDP reached CNY7.2 trillion (USD1.1 trillion) in the first six months, up 4.5 percent from a year earlier in real terms, according to data released yesterday by the provincial bureau of statistics. The growth rate was 0.3 percentage point higher than a year earlier and 0.6 percentage point above the level recorded in the first half of 2024.

The stronger performance reflects a broad recovery in Guangdong's industrial and service sectors, with high-tech industries becoming a key driver of investment and exports, Peng Peng, executive president of the Guangdong System Reform Research Society, a local think tank, told Yicai. The figures underscore the province's progress in pursuing high-quality economic development.

The added value of Guangdong's industrial enterprises above the designated size rose 5.8 percent from a year earlier in the first half, 0.4 percentage point faster than in the first quarter. High-tech manufacturing expanded 11 percent and accounted for 36 percent of total industrial output, about 3 percentage points higher than a year earlier, according to official statistics.

Output of industrial robots, 3D printing equipment, and integrated circuit products increased 34 percent, 52 percent, and 30 percent, respectively. Production of new energy vehicles and lithium batteries climbed 48 percent and 32 percent.

The province's service sector expanded 4.5 percent in the first half. The financial sector grew 8.5 percent, while information transmission, software and information technology services rose 8.2 percent. Leasing and business services advanced 9.3 percent.

Investment Weakness Persists Amid Property Slump

However, the shift from old to new growth drivers continued to weigh on investment. Fixed-asset investment fell 11.4 percent from a year earlier, with real estate development investment declining 21.6 percent and infrastructure investment slipping 2.5 percent. Investment in high-tech industries, however, increased 9.8 percent.

The two major challenges facing Guangdong are also common nationwide, Peng said. On the one hand, fixed-asset investment is being dragged down by the property downturn, while traditional industries still lack sufficient investment in technological upgrading. On the other hand, uncertainties in the external environment and the transition from old to new growth drivers have slowed overall economic expansion, he added.

Emerging industries play an important supporting role in future economic development, Peng said. The sharp increase in investment in these sectors has laid the foundation for releasing future growth potential. In addition, residents' income is growing faster than GDP, indicating that consumption still has room to play a bigger role in driving the economy, he added.

Per capita disposable income in Guangdong reached CNY29,667 (USD4,379) in the first half, up 4.7 percent year on year in nominal terms and 3.9 percent in real terms after adjusting for price changes, according to official data.

Editors: Dou Shicong, Emmi Laine