How does Shenzhen's GDP surpass Hong Kong's? Is it true that Shenzhen's GDP exceeds Hong Kong's? Many partners don't know yet. Let's take a look with Xiaobian.
How does Shenzhen's GDP exceed Hong Kong's
According to the latest economic data, Shenzhen surpassed Hong Kong in terms of GDP for the first time in 2019, becoming the largest city in Guangdong, Hong Kong and Macao in terms of economic aggregate. However, in terms of per capita GDP, Hong Kong still substantially exceeds Shenzhen, and its position in business environment and finance has not been weakened.
On February 27, the census and Statistics Department of the government of the Hong Kong Special Administrative Region announced that Hong Kong's gross domestic product (GDP) in 2018 was HK $2845.317 billion, a year-on-year increase of 3%. According to the exchange rate provided on the official website of the Hong Kong Statistics Department, the average exchange rate of RMB / Hong Kong dollar in 2018 was 1.1855, and the GDP of Hong Kong last year was about RMB 240.1 billion.
At the beginning of this month, Shenzhen released the GDP data of 2019, with the GDP of the whole city of 242.2198 billion yuan, achieving a high growth rate of 7.6% over the previous year. In terms of RMB, the GDP of Shenzhen was 22.1 billion yuan higher than that of Hong Kong last year, which was the first time that Shenzhen surpassed Hong Kong.
It is no surprise that Shenzhen's GDP exceeds that of Hong Kong. In 1997, when Hong Kong returned to China, its GDP was equivalent to 18% of that of mainland China. After that, with the rapid economic growth of the mainland, the proportion fell to about 2%, which was surpassed by Shanghai and Beijing. In March 2017, Zhang Dejiang, then chairman of the National People's Congress, mentioned that Shenzhen's GDP might surpass Hong Kong's in two years.
Analysts believe that Hong Kong's excessive dependence on the service industry, especially the financial industry and the real estate industry, is the main reason for the gradual backwardness of its economic development. According to the report on affordability of international housing prices in 2017 issued by demographia, a consulting agency, Hong Kong has been ranked first for eight consecutive years as "extremely affordable", and the situation has worsened in the past two years.
Shenzhen has been able to catch up with others mainly because of the success of the strategy of "changing cages for birds". The development of industry, especially high-tech industry, has become the key force to promote the economic development of Shenzhen. Comparing Shenzhen and Hong Kong in a series of indicators, such as R & D intensity, proportion of R & D expenditure of industrial enterprises, density of R & D personnel, and amount of capital obtained from venture capital, Shenzhen is higher than Hong Kong in all indicators. It has become the most important science and technology and Innovation Center in China 40 years ago.
According to the data, in 2018, the added value of industries above Designated Size in Shenzhen reached 910.954 billion yuan, an increase of 9.5% over the same period of last year. Shenzhen ranked first among large and medium-sized cities in China for two consecutive years, becoming the only city in China with industrial added value exceeding 900 billion yuan above designated size. Among them, the added value of advanced manufacturing industry and high-tech manufacturing industry were 656.483 billion yuan and 613.12 billion yuan respectively, increasing by 12.0% and 13.3% respectively, and their proportion in the added value of industries above designated size increased to 72.1% and 67.3% respectively. Industries with rapid growth included computer, communication and other electronic equipment manufacturing, with an increase of 14.0%; special equipment manufacturing industry by 10.0%; automobile manufacturing industry by 12.4%; and pharmaceutical manufacturing industry by 25.0%.
In the government work report in 2019, Shenzhen city has made it clear that this year is the 'year of urban quality improvement'. It is necessary to build a world-class bright science city and benchmarking 'the highest standard and the highest level'. In the report, Shenzhen pointed out that it will strive to create the "best choice" for global innovation, entrepreneurship and investment development, accelerate the construction of international science and technology industry innovation center, focus on the construction of Guangming Science City and Xili Lake International Science and Education City, and strive to speed up the completion of basic research weaknesses and improve the whole process of innovation ecological chain.
Although Shenzhen surpasses Hong Kong in GDP, Hong Kong still surpasses Shenzhen in terms of per capita GDP. Moreover, in addition to GDP, the competitiveness of a region should also consider the degree of market opening, the rule of law and the quality of civil servants. In this regard, there is still a big gap between Shenzhen, including the whole mainland and Hong Kong.
According to the economic freedom index report released by the Heritage Foundation of the United States in January in Washington, D.C., Hong Kong's total score of economic freedom remained at 90.2 points in 2018 (full score of 100 points), once again becoming the only economy in the world with a total score of more than 90 points. This is also the 25th consecutive year that Hong Kong has been rated the freest economy in the world.
Against the background of increasing environmental uncertainty at home and abroad, Hong Kong itself is also seeking change.
Hong Kong's chief executive, Mrs Carrie Lam, admitted at the Guangdong, Hong Kong and Macao Grand Bay Area propaganda conference held in Hong Kong last week that with the increasing competition between the global and surrounding economies, the advantages of Hong Kong's traditional industries are narrowing. Today, with the slowdown of global economic growth and the rise of protectionism, Hong Kong is facing more severe challenges.
She pointed out that Hong Kong must strive to innovate and develop high value-added and diversified industries, inject new impetus into Hong Kong's economy, and provide new space and opportunities for Hong Kong people, especially young people, to expand their careers. Hong Kong must seize this rare opportunity, take an active part in the development of the Bay area and create more favorable conditions for itself.
The above is how the GDP of Shenzhen surpasses that of Hong Kong. Is it true that Shenzhen's GDP exceeds Hong Kong's? I believe you already know through this article. Thank you very much for your reading.