(Yicai) July 30 -- As China’s fifth‑largest urban economy and a major trading hub, Guangzhou gained momentum in the second quarter, propelling the city’s first-half growth to 3.8 percent on the back of policy‑driven consumption, fast‑growing emerging industries, and a stabilizing property market.

Guangzhou’s gross domestic product was CNY1.5 trillion (USD209.1 billion) in the six months ended June 30, after growth accelerated from a 3 percent clip in the first quarter, according to data released yesterday by the local statistics bureau.

By comparison, China’s economy grew 5.3 percent in the first half, the National Bureau of Statistics revealed two weeks ago, as the central government implemented more policies to address external trade and economic uncertainties and internal challenges stemming from industrial restructuring.

Guangzhou’s service sector output jumped 4.3 percent to CNY1.13 trillion, while manufacturing rose 2.1 percent to CNY370.6 billion (USD51.7 billion). Primary industry, which includes mining and agriculture, logged a 4.2 percent gain to CNY11.2 billion (USD1.6 billion).

Investment in real estate development rose 4.1 percent, outpacing the 0.8 percent growth in overall fixed-asset investment.

The lifting of restrictive housing policies, coupled with enhanced support for homebuyers, has restored developers’ confidence in pursuing land acquisitions in Guangzhou, the capital of Guangdong province, Xiao Wenxiao, chief analyst for Guangzhou and Foshan at real estate platform CRIC, told Yicai.

The return to growth in real estate investment was unexpected but encouraging, said Peng Peng, executive chairman of the Guangdong Society of Reform, noting that monthly home sales totaled 600,000 square meters in the first half, signaling market stabilization.

Auto production, a key local industry, showed signs of recovery. While value added of major industrial enterprises rose 0.7 percent, the auto sector contracted 5.7 percent. That was better than the 6.4 percent drop in the first quarter.

Peng said the data shows that Guangzhou’s auto sector remains under pressure. However, electric vehicle output rose 9.5 percent in the first half, compared with 0.7 percent growth in the first quarter, reflecting progress in industrial transformation.

Retail Sales, Emerging Industries

Retail sales of consumer goods climbed 5.9 percent to CNY561.1 billion in the first six months, up from 3.5 percent growth in the first quarter. Trade-in subsidies boosted sales of home appliances and furniture, with the former rising nearly 28 percent and the latter jumping more than fourfold.

The city also reported strong growth in emerging sectors. The value added of the aircraft, spacecraft, and equipment manufacturing industries jumped 17 percent, while civil drone production surged 38 percent.

Guangzhou continues to deepen its push into the Internet Plus sector, integrating digital technologies with traditional industries to drive innovation.

“As Guangzhou’s Internet Plus industry maintains strong momentum, the digital economy has become the city’s primary engine for cultivating new productive forces,” Peng said, adding that this shift is key to upgrading the city’s industrial structure and sustaining long-term development.

The term “new quality productive forces” refers to China’s strategic goal of shifting from traditional growth models to innovation-driven development.

Editor: Emmi Laine