On October 29th, Wenzhou released its economic performance in the first three quarters of this year. According to the unified regional calculation of gross domestic product (GDP), the city's GDP reached 673.2 billion yuan, marking a year on year (YoY) increase of 6.2% at constant prices, surpassing the national and provincial averages by 1.4 and 0.8 percentage points respectively. In terms of the key economic indicators, the economy has maintained steady performance and strong resilience, continuing to outperform both national and provincial averages.

The city’s steady economic growth this year is mainly due to a package of measures that have built a collaborative force for development.

Wenzhou’s trade-in policy sparks a surge in consumer spending

During the first three quarters, Wenzhou saw a steady expansion in consumer spending as a series of policies aimed at expanding domestic demand and promoting consumption took effect, continuously unleashing consumption potential and maintaining a robust recovery in the consumer market. Particularly driven by the trade-in policy, services consumption and spending on big-ticket items contributed to a rebound in consumption growth. The total retail sales of consumer goods increased by 5.3% YoY, outperforming the provincial average by 1.1 percentage points, while the retail sales of consumer goods by enterprises above designated size (annual revenue ≥ 5 million yuan) grew by 7.1%.

Wenzhou’s trade-in policy for consumer goods has guided the orderly release of residents’ consumption potential, serving as a “catalyst” for the growth of durable consumer goods such as automobiles and household appliances. Data showed that the retail sales of household appliances and audio-visual equipment, communication devices, and new energy vehicles from companies whose retail revenues are above 3 million yuan per year grew by 64%, 44.5%, and 12.6% respectively. Online retail sales have remained vibrant, with retail sales through public networks by companies mentioned above increasing by 17.4% YoY from January to September.

It is learned that Wenzhou’s government trade-in subsidies cover multiple categories of products. Household appliances with varying energy efficiencies have different subsidy amounts. For example, a 15% subsidy is available for smart home appliances. Wu Yufei, Secretary-General of the Wenzhou Household Electrical Appliances Association, stated that since Wenzhou upgraded its trade-in policy in September, sales of household appliances have increased by 25%-30% YoY, especially in Lucheng District, which has enjoyed government subsidies of nearly 100 million yuan in this category.

New quality productive forces gain momentum

In the first three quarters, the added value of high-tech industries, high-end equipment manufacturing, and core manufacturing industry of the digital economy from the industrial enterprises above designated size, grew by 13.5%, 14.7%, and 15.9% respectively, demonstrating a strong momentum in new quality productive forces. Emerging industries are building strong momentum through industrial chain integration, with industrial added value above designated size of 415X advanced manufacturing clusters increasing by 12.5% YoY.

Driven by new quality productive forces, in the first three quarters, Wenzhou’s industrial economy maintained a “strong start with steady growth” trend, further solidifying the foundation for positive development. The value added of industrial enterprises above designated size increased by 10.5%, exceeding the provincial average by 2.7 percentage points, with 90% of the top ten industries growing. Notably, key sectors such as auto parts, computer and communication electronics, specialized equipment, and electrical machinery maintained double-digit growth, effectively supporting the sustained improvement of the industrial economy.

In addition, with the strengthening of new driving force of economic growth, the fixed-asset investment has continued to expand in scale and optimize in structure. In the first three quarters, the city’s fixed-asset investment grew by 1.5% YoY, if excluding real estate investment, it grew by 10.7%, among which, manufacturing investment maintained a rapid growth rate of 13.9%, while investment in high-tech industries increased by 25.5%.

Per capita disposable income reaches 55,257 yuan

Income is crucial to the happiness of the common people. In the first three quarters, the city’s per capita disposable income for residents was 55,257 yuan, with nominal growth of 4.7% YoY. In terms of permanent residence, the figure for urban residents and rural residents was 63681 yuan and 34685 yuan, with nominal growth of 4.0% and 6.4%, respectively. The income ratio between urban and rural residents has decreased from 1.88-to-1 in 2023 to 1.84-to-1. The process of “raising the income of low-income groups” has accelerated, with the per capita disposable income of low-income farmers increasing by 11.4%YoY.