Shenzhen's GDP growth in the first quarter was impressive, but retail sales growth remained weak, as consumer spending intentions are affected by mortgage payments and living costs.

Foreign media: As a major hub of Chinese technology, Shenzhen saw its GDP grow by 5.8% year-on-year in the first quarter of this year; however, retail sales increased only by 0.5%, totaling 241.7 billion RMB (approximately 35.4 billion USD), far below last year's full-year growth rate of 2.3%, and significantly lagging behind Guangzhou’s 6.6% retail growth during the same period. Despite Shenzhen’s GDP reaching 3.87 trillion RMB last year—ranking third among cities nationwide—the city placed only sixth in retail sales rankings for the first quarter, which does not align well with its status as a first-tier city.

Experts point out that Shenzhen’s economic growth is heavily reliant on export-oriented manufacturing, and the benefits of GDP expansion have not significantly reached residents—additional output primarily flows into research and development, industrial expansion, and reinvestment rather than increasing residents’ disposable income. Meanwhile, mortgage burdens and rising living costs have somewhat dampened consumption intentions, causing residents to tighten their wallets.

Another policy analyst noted that without the recent influx of Hong Kong residents crossing over to Shenzhen for "affordable shopping," driving up spending in dining and entertainment, Shenzhen’s retail sales might even have experienced negative growth.

Original article: toutiao.com/article/1864274716725320/

Disclaimer: The views expressed in this article are solely those of the author.