Guangzhou H1 2025 GDP Up 5.8%, IC Manufacturing Jumps 73.9%, NEV Output Rises 53.2%

In the first half of 2025, Guangzhou's gross domestic product (GDP) grew 5.8% year-on-year to RMB 1,604.5 billion, the fastest half-year growth since 2022. By sector, the primary industry added value of RMB 10.8 billion, up 3.2%; the secondary industry added value of RMB 380 billion, up 5.6%; and the tertiary industry added value of RMB 1,213.7 billion, up 5.9%. Among first-tier cities, Guangzhou tied with Shenzhen for the highest economic growth rate, with Shenzhen's GDP at RMB 1,984.3 billion, also up 5.8%. Shanghai and Beijing posted GDP of RMB 2,788.7 billion and RMB 2,641.2 billion, growing 5.6% and 5.4%, respectively. The GDP gap between Guangzhou and Chongqing narrowed to RMB 65.7 billion. Industrial production improvement was the main driver of economic growth. In the first half, Guangzhou's industrial value added above designated size increased 6.6% year-on-year. Among subsectors, integrated circuit manufacturing value added surged 73.9%, integrated circuit wafer output rose 65.9%, and integrated circuit design operating revenue jumped 108.1%. Yuexin Semiconductor had reached a monthly capacity of 63,300 wafers by end of 2025 and started construction of a fourth phase 12-inch analog-mixed signal specialty process line with a planned capacity of 40,000 wafers per month, bringing total capacity to 120,000 wafers per month upon completion. The computer, communication and other electronic equipment manufacturing sector grew 10%, while electrical machinery and equipment manufacturing expanded 15.3%. New energy vehicle output rose 53.2%. Pharmaceutical manufacturing value added grew 6.4%, service robot output increased 13.5%, industrial robot output rose 9.4%, lithium-ion battery output surged 84.9%, and photovoltaic cell output jumped 130.1%. Among traditional pillar industries, automobile manufacturing value added grew 9.1%, electronic products manufacturing rose 11.2%, and petrochemical manufacturing increased 5.2%. Fixed-asset investment grew 6.1% year-on-year, the fastest first-half growth since 2023. Industrial investment exceeded RMB 100 billion for the first time, accounting for 21.5% of total investment. High-tech manufacturing investment reached RMB 42.4 billion, up 29.5%, representing over 50% of manufacturing investment. Investment in computer, electronic and communication equipment manufacturing rose 38.9%, while investment in information transmission, software and information technology services grew 35.6%. A total of 851 key municipal projects completed investment of RMB 235.4 billion, including the start of the Rongjie New Energy Intelligent Manufacturing Base, a project worth over RMB 10 billion, and the topping-out of the CSOT T8 project. Service industry revenue above designated size grew 12.3% year-on-year. Leasing and business services increased 24.1%, internet, software and information technology services rose 12.4%, and scientific research and technical services grew 12.7%. Revenue in key areas such as artificial intelligence, industrial software, and basic software grew 17.2%. In the office market, net absorption in the first half totaled 123,000 square meters, 24% higher than the average annual level of the past five years. As of the end of the second quarter, the average vacancy rate for Grade A office buildings in Guangzhou was 23.1%, up 0.6 percentage points year-on-year. Total stock reached 7.864 million square meters, expanding 4.8% year-on-year. The average rent was RMB 114.8 per square meter per month, with the rent index down 8.9% year-on-year.