Guangdong grows but exports suffer
Despite outperforming the 7.9% average rate of growth in China's economy, Guangdong still fell behind economic rivals Beijing and Shanghai, which grew by 11% and 10.2% respectively.
Guangdong's economy grew 10 per cent to 458.4 billion yuan (about $55.4 billion) in the first half, but exports grew just 0.6 per cent against a first-quarter growth of 0.9 per cent and last year's first-half growth of 32.8 per cent.
The province is heavily reliant on export markets, and exports account for roughly 80% of GDP. The economic slowdown in the US has therefore hurt the region, with up to 40% of products eventually finding their way to the US market.
Mr Bu Xinmin, Guangdong Statistical Bureau director, said the clothing and toy sectors were particularly hard-hit, falling 25.7 per cent and 19.6 per cent respectively year on year. Exports of furniture, luggage, shoes and plastics - the province's other key manufactured goods - fell between 1.5 per cent and 10.2 per cent.
