(Yicai Global) Feb. 22 -- Zhengzhou in central Henan province, Changsha in central Hunan province and Xi’an in northwestern Shaanxi province are targeting gross domestic product growth of 7 percent this year, the highest among China’s major cities.
Wuhan in central Hubei province has set a goal of 6.5 percent while other major cities including Guangzhou, Shenzhen, Foshan and Dongguan in Guangdong province, the province with the biggest economy, are all aiming for 6 percent, according to the government work reports released by 24 municipalities with a GDP of over CNY1 trillion (USD145 billion).
Boosting consumption is an important way for local governments to drive economic growth. Zhengzhou will moderately ease restrictions on buying houses, reduce the mortgage burden and offer discounts to highly skilled professionals buying homes, the city said in its report. It will also continue to exempt new energy vehicles from purchase tax and issue coupons for auto purchases, it added.
Xi’an, which logged one of the fastest GDP growth rates in the country last year, will focus on industrial growth. The manufacturing hub will support the construction of 90 key projects, including Longi Green Energy Technology’s photovoltaic industrial park, which could generate new output value of over CNY40 billion (USD5.8 billion), it said.
Xi’an’s economy expanded 4.4 percent year on year in 2022 and its added value among industries above a designated size soared 13.9 percent. This was largely thanks to strong growth in the NEV, information technology and PV industries.
The 24 cities with a GDP of over CNY1 trillion accounted for almost 40 percent of the country’s GDP last year, but only 11 managed a growth rate equal to or higher than the national average of 3 percent due to the huge economic damage caused by the Covid-19 pandemic, according to Yicai Global research.
Editors: Dou Shicong, Kim Taylor