The economy of the Guangdong manufacturing and tech hub of Shenzhen exceeded that of Hong Kong’s for the first time in history in 2018.
Shenzhen’s GDP posted a 7.6% YoY increase to hit 2.42 trillion yuan in 2018, while Hong Kong’s saw a 3% increase over the same period to reach HKD$2.85 trillion.
This means that Hong Kong’s GDP fell just short of Shenzhen’s last year based on the official 2018 exchange rate of HKD$1.1855 per Chinese renminbi as provided by the special administrative region’s Census and Statistics Department.
Hong Kong finance secretary Paul Chan said the special administrative region’s growth was hampered in the second half by mounting trade tensions, with outbound shipments falling 0.2% YoY in the fourth quarter.
Chan sees Hong Kong’s GDP growth hovering between 2 and 3% in 2019, with “the uncertain global economic outlook this year [restraining] Hong Kong’s economic performance.”
Domestic analysts expect the recently launched Greater Bay Area plan to integrate Hong Kong’s economy more closely to that of the Pearl River Delta, making it more resilient in the face of external vicissitudes.