On April 27th, the Chengdu Municipal Bureau of Statistics announced that in the first quarter, the city achieved a regional GDP of 551.82 billion yuan, a year-on-year increase of 5.0% based on comparable prices. Looking at industries, the added value of the primary industry was 9.44 billion yuan, an increase of 1.0%; The added value of the secondary industry was 154.88 billion yuan, an increase of 4.3%; The added value of the tertiary industry was 387.50 billion yuan, an increase of 5.3%.
From the perspective of the three industries, both the primary and secondary industries in Chengdu have lower GDP growth rates. Due to the relatively small size of the primary industry, the effect of the secondary industry on GDP growth rate is more pronounced. The secondary industry includes industry and construction, with Chengdu’s industrial growth under pressure in the first quarter.
Statistics show that in the first quarter, the added value of industrial enterprises above designated size in Chengdu increased by 3.9% year-on-year. Compared to the 5% growth rate from January to February, it decreased by 1.1 percentage points, indicating that Chengdu’s industrial production faced significant pressure in March, which may mainly come from its main pillar industries.
Looking at the three major categories of industry, in the first quarter of this year, the added value of mining, manufacturing, electricity, heat, gas, and water production and supply industries increased by 10.3%, 2.2%, and 6.5%, respectively. This indicates weak growth in its manufacturing industry, which has become the main factor dragging down industrial growth.
Although statistical data shows stable contributions from key industries, 26 out of 37 industry categories have achieved positive growth, with the added value of rubber and plastic products, food manufacturing, and oil and gas extraction increasing by 26.1%, 14.9%, and 10.7%, respectively. The production of emerging products has grown rapidly, with the production of new energy vehicles and lithium-ion batteries increasing by 33.1% and 57.3% respectively.
However, in reality, the electronic information industry is one of the main pillar industries of Chengdu’s manufacturing industry. Under the influence of factors such as reduced orders, industrial transfer, and declining international demand, Chengdu’s computer manufacturing and other industries have experienced a significant decline since last year.
According to the Chengdu Statistical Bulletin for 2023, the total output of electronic computers in Chengdu was 52.214 million units, a decrease of 27.5%, and the integrated circuits were 7.86 billion units, a decrease of 12.2%. These have also led to a decrease in its imports and exports. In 2023, Chengdu achieved a total import and export of goods of 748.98 billion yuan, a decrease of 9.7% compared to the previous year.
The Chengdu Bureau of Statistics did not release data on the electronic information industry when releasing economic data for the first quarter. However, from January to February, the electronic information industry in Chengdu only grew by 0.1%. Zeng Junlin, Deputy Director of the Sichuan Provincial Bureau of Statistics, recently released data for the first quarter of Sichuan Province, stating that the added value of Sichuan’s computer, communication, and other electronic equipment manufacturing industry decreased by 2.8% in March.
At the same time, the driving force of Chengdu’s tertiary industry belt is not very strong. In 2023, Chengdu’s secondary industry only grew by 3%, but its GDP grew by 6%, mainly driven by the tertiary industry, which grew by 7.5% in 2023. In the first quarter of this year, the growth rate of Chengdu’s tertiary industry was 5.3%.
If we look at the “three carriages” of investment, consumption, and import and export, the decline in consumption growth rate is relatively significant. In the first quarter of this year, Chengdu achieved a total retail sales of consumer goods of 242.0 billion yuan, a year-on-year increase of 2.7%. According to the location of the operating unit, the retail sales of urban consumer goods reached 231.99 billion yuan, an increase of 2.6%; The retail sales of rural consumer goods reached 10.01 billion yuan, an increase of 5.1%.
The Chengdu Municipal Bureau of Statistics stated that overall, in the first quarter, with the continuous manifestation of various policy effects and the accumulation of positive factors, the city’s economic operation continued to recover and show a positive trend. However, there are still some industries with uneven and insufficient development, and some enterprises face certain difficulties in production and operation. The foundation for economic stability and improvement is not yet solid.