Vital Statistics (2006)
GDP:  RMB 344.1 billion
GDP per Capita: RMB51,871
Economic Growth Rate (2006):  14.3%
Population: 4.1million (urban) – 2.5million (rural)
FDI:  2.3 billion USD
Annual Average Wage:  RMB28,186
Government Effectiveness Rating:  12th
2006 Chinese Cities Competitive Rating:  13th

Economic Overview
Since the opening up of the Chinese economy in the 1980s, Hangzhou has fully exploited its natural economic advantages: a strategic position in the economic powerhouse of the Yangtze Delta and the city's proximity to Shanghai. Today, Hangzhou has the 8th-largest economy of all Chinese cities, and has garnered accolades in China and abroad for its vibrant investment climate. What is particularly remarkable is that the city has succeeded in doing this without compromising one of its most precious assets: its reputation as a city of beauty and culture which provides a contemplative haven from the frantic pace of the Chinese economic miracle.
Hangzhou fully epitomizes China's market-oriented reforms: it is one of the main bastions of Chinese entrepreneurship, with the private sector accounting for over 60 per cent of economic output and with 88,611 private enterprises in the city, employing over 80 per cent of the city's workforce. While its economic strength ranks among the top 10 cities in China in terms of GDP and production, the city has also paid a great deal of attention to its environmental responsibilities and has been awarded over ten national and world-class honorary titles including: National Garden City, National Environmental Protection Model City, the UN Habitat Prize, and International Garden City. Hangzhou ranks 13th among the 200 mainland cities rated in the 2007 Chinese Cities Comprehensive Competitiveness Report issued by the Chinese Academy of Social Sciences.

The city has maintained an annual economic growth rate of over 10 per cent for 16 consecutive years, and from the year 2000 through to 2006, it has enjoyed an average annual growth rate of 13.7 per cent. In 2006, the Gross Domestic Product (GDP) of Hangzhou was 344.1 billion RMB, up by 14.3 percent over the previous year. The 2006 GDP per capita was up 13 per cent to 51,871 RMB (approximately 6,500 USD), making Hangzhou one of the wealthiest consumer markets in China, with a growing middle class and an increasingly higher standard of living.

Hangzhou has the largest economy in terms of GDP in Zhejiang and ranked 8th among all cities in the country in 2006. It has been anointed by the World Bank as the "Golden City" for its foreign investment environment, ranked No.1 for 3 consecutive years in China's "Best Mainland Commercial City Rankings", and trumpeted by Forbes magazine as one of the best destinations for foreign capital. Hangzhou is open for business, offering foreign investors a sound business environment, a skilled labor force, a strong financial system and competent city government.

Five strategic industries form the bedrock of the city's economy: textiles and garments, electronic and information technology, pharmaceuticals and chemicals, machinery manufacturing and the food and beverages industries. Crucial to the city's growth has been the flood of investment from abroad, facilitated by the city's preferential policies and supported by Hangzhou's economic and industrial development zones.

Going forward, the Hangzhou government's planning and development policies will enhance the city's environmental credentials by moving traditional industries away from the center and developing capabilities in computer animation and related technology as well as a range of specialty industries, with a special emphasis on the tourism and hospitality sectors.

Source: Hangzhou Statistical Yearbooks (1996-2006)

Economic Contribution Ratios by Sector
Hangzhou has a strong manufacturing sector and strong growth in the tertiary sector.
Composition of GDP (%)

	1990	1995	2006
Primary	16.3	9.1	4.5
Secondary	50.7	53.8	50.6
Tertiary	33.0	37.1	44.9

Foreign Trade Overview
Hangzhou's total import/export volume was US$38.9 billion in 2006. Hangzhou has an export-oriented economy, with the ratio of foreign trade volume as a percentage of GDP reaching 90% in 2006. In the first quarter of 2007, exports grew by 22.9% year-on-year to US$6.8 billion. In the same period, imports grew by 32.1% year-on-year to US$3.3 billion.

Major exports include electronics, high-tech products, garments, clothing accessories, textiles and silk. Hangzhou's major export trade markets were the US, Japan, Germany, the UK, Hong Kong, Italy, the Netherlands and France.

Foreign Trade and Cultural Ties
Hangzhou has twinned with 14 cities in 15 different countries around the world: Gifu and Fukui, Japan; Boston, USA; Baguio, the Philippines; Leeds, UK; Yousu, Korea; Nice, France; Paramaribo, Suriname; Budapest, Hungary; Beit Shemesh, Israel; Agadir, Morocco; Curitiba, Brazil; Kazan, Russia; Cape Town, South Africa; and Oviedo, Spain.

Top 5 Sources of the Utilization of FDI (Billions of USD) (2006)

Number	Country	Utilization of FDI	Proportion (%)
1	Hong Kong	9.80	43.47
2	Virgin Island	4.78	21.18
3	U.S.A.	1.89	8.39
4	Samoa	0.82	3.64
5	Japan	0.67	2.98

 

 

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