(Yicai) July 25 -- Only seven of the 23 Chinese provincial-level regions that released their gross domestic product data for the first half of the year reported a GDP growth faster than their annual goals, mainly due to insufficient investment and consumption.

Beijing, Tianjin, Inner Mongolia Autonomous Region, Chongqing, and Jiangsu, Zhejiang, and Fujian provinces saw higher GDP growth in the six months ended Dec. 30 than their annual targets. That of Jiangsu was 0.8 percentage point higher than its 2024 goal, while that of the other six was between 0.1 and 0.4 point faster.

Among the seven faster growth regions, Jiangsu, Zhejiang, and Fujian are ranked in the top 10 Chinese provincial-level regions by GDP.

The economic performance of Guangdong province, China's largest region by GDP, was disappointing. Its GDP reached CNY6.5 trillion (USD895.1 billion) in the first half, up only 3.9 percent from a year ago and 1.1 point lower than its annual goal.

Weak investment and consumption dragged Guangdong's economy despite excellent industrial growth and foreign trade in the first six months of the year. The province's industrial added value above a designated size rose 6 percent, imports and exports jumped 13.8 percent, but fixed asset investment fell 1.5 percent, while retail sales of consumer goods climbed only 1.2 percent.

The contraction in the real estate market was a significant drag on Guangdong's economy, especially regarding home appliances, home furnishing, and building materials, Peng Peng, chief executive of Guangdong System Reform Research Society, told Yicai. The local government should continue actions to stabilize the real estate market and make great efforts to develop new quality productive forces and expand overseas emerging markets, Peng added.

Jiangsu, China's second-biggest province by GDP, had an outstanding economic performance in the first half. Its GDP expanded 5.8 percent to CNY6.3 trillion, much higher than its annual goal of 5 percent, mainly thanks to its strong growth in industrial production, the modern service sector, and foreign trade.

Jiangsu's imports and exports jumped 8.5 percent to a record CNY2.68 trillion, or 2.4 points higher than the national average. Its exports rose 8 percent and imports 9.3 percent.

The stronger-than-expected GDP growth of Jiangsu and Guangdong's underperformance resulted in the gap between the top two provinces narrowing to CNY191.6 billion (USD26.4 billion).

Weak Investment, Consumption

Insufficient investment and consumption were a major drag on China's economy in the first six months of the year. Thirteen provincial-level regions saw fixed asset investment growth of 5 percent or less, with eight reporting less than 3 percent. That in Guangdong fell 1.5 percent from a year earlier, indicating the investment-driven economic growth model is gradually becoming less reliable.

Consumption growth in 15 regions exceeded the national average of 3.7 percent. Hunan, Henan, and Hubei provinces posted the fastest growth, with 5.7 percent, 5.6 percent, and 5.5 percent. Of those with slower growth than the national average, Tianjin, Shanghai, and Hainan province saw consumption drop from a year ago, with that in Hainan down 6.2 percent.

Insufficient domestic demand is an important factor that prevents the economy from growing faster, Zheng Tiancheng, deputy director of China Development Institute's Center for Enterprise and Market Research, said to Yicai. It is necessary to speed up tapping residents' consumption potential to make the middle-income group dare to consume and the low-income group have money to consume, Zheng added.

It is also necessary to increase supply to meet the consumption demand of the high-income group, Zheng pointed out.

Xinjiang Uygur Autonomous Region reported a 51.4 percent growth in imports and exports in the first half, the biggest among the 23 regions to release figures. Guangdong followed with 13.8 percent, Hebei province with 13.6 percent, Anhui province with 9.7 percent, and Fujian with 9.4 percent.

Most of these provinces are traditional ones with strong foreign trade in East China, supporting the rise of national foreign trade in the first half.

Editors: Tang Shihua, Martin Kadiev