Export oriented Guangdong feels highest heat of impact

17 Dec '08

2 min read

The total value of foreign trade from Guangdong Province amounted to US $631.180 billion from January to November this year, representing a 10 percent increase over the same period last year, but November growth fell nearly 13 percent from that in October. It will be difficult to maintain annual growth target of 10 percent, if total value of imports and exports continue to decline in December.

The industry believes that the rapid decline in total foreign trade in Guangdong is related to a larger proportion of traditional labor-intensive industries. In comparison with the same period last year, orders received by textile enterprises in Guangdong have fallen by 30-40 percent with prospects for the textile industry expected to be even more difficult next year, mainly due to decline in overall demand.

The industries in Guangdong are mainly dependent on exports for their survival and its dependence on exports is as high as 90 percent, which is three times the national average and therefore the financial crisis has brought a serious impact on the all sectors with the textile sector feeling the greatest brunt.

In addition, under the impact of the financial crisis, the import and export value in November from Shanghai registered $45.4 billion, down 9.7 percent from the same period last year, the biggest monthly decline in 7 years. Some coastal provinces and cities with high exports, which include the likes of Zhejiang, Fujian and Beijing, have also been seriously impacted by the financial crisis.

Fibre2fashion News Desk - China

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