In China, each province has its own tale as the Asian economic giant makes its slow transition toward a consumption-driven economy. While some of the nation’s regions are streaking ahead, others are caught in the mire.
" The divergence between the ‘old’ and ‘new’ China will continue to widen."
Raymond Yeung, ANZ Chief Economist Greater China
Analysis by ANZ shows just how diverse the economic performance of different Chinese regions was during the first half of 2016 and the regional differences has widened compared with a decade ago.
Shanghai, China’s financial centre, has witnessed a contraction in industrial production. However, solid growth in the services industry has buttressed GDP growth.
In fact, investments in the metropolitan are increasingly tilted towards the services sector, consistent with China’s strive to rebalance its economy.
Leading the western provinces, Chongqing has consistently outperformed other cities in recent years thanks to rapid development of automobile and electronics manufacturing (both national pillar industries) in the city.