Powered by investment, China’s local GDPs grow

(ECNS) – Most of China's provincial GDPs are picking up, while downward pressure still exists in real estate markets.

Based on data from 10 provinces that have released their H1 economic reports, most saw their GDP growth rates edging up, driven mostly by boosted investments.

The GDP of south China's Guangdong province amounted to over 3 trillion yuan ($498 billion) in the first half of 2014, a year-on-year growth rate of 7.5 percent.

Guangdong's statistics bureau chief Wang Wensen said the figures are the result of better imports and exports, increased investments and bigger consumption.

Guangdong, known for its foreign trade, saw a gyration in its import and export growth rate for the first time in six months with an increase of 2.3 percent year-on-year.

Fine-tuning measures to encourage investment, especially in transportation, are also paying off. Guangdong plans to put 800 billion yuan ($129 billion) over the next few years in its infrastructure construction. Steel production and petrochemical industries will also enjoy boosted financial support.

Central provinces such as Hunan, Hubei and Jiangxi reported growth rates of over 9 percent, thanks to their rich water resources and large consumption markets.

However, local governments are feeling the crunch of reduced income due to a property slowdown.

Between January and May, Henan province saw its real estate investment, sales area and home construction fall by 9.8, 27.8 and 4.9 percentage points respectively.

An official said the cooling property market will take a toll on relevant industries and local finance, but so far the risks are controllable.