January 10, 2009

Chinese hubs struggling in economic crisis

The Chinese economic hubs in the city of Shanghai and Guangdong province are showing signs of struggle amid the ongoing economic crisis, an official says.

Guangdong Deputy Governor Huang Longyun said at a Beijing news conference this week that both economic powerhouses have been impacted greatly by the major economic downturn plaguing most of the world, the China Daily reported Friday.

Huang said while his province's gross domestic product rose 10.1 percent last year, that was significantly less than the 14.7 percent increase it enjoyed in 2007.

While the province saw a 5.6 percent increase in exports in 2008, that increase paled in comparison to the 22.3 percent increase it experienced a year earlier.

The Daily said, according to Caijing magazine, Shanghai endured a double-digit decline in its industrial output in December.

Shanghai Mayor Han Zheng said in light of the decline, whose exact figures were not reported, there was doubt the city's economy would rebound during the first quarter of 2009.