Economy
The Pearl River Delta has been one of most economically dynamic regions of the People's Republic of China since the launch of China’s reform programme in 1979. With annual gross domestic product growth of 13.45 percent over three decades since 1978, it is 3.5 percentage points higher than the national average. Since 1987, almost 30% of all foreign investment in China was in the PRD. By 2007 its GDP rose to US$448 billion which makes it's economy about the size of Taiwan's. The abundance of employment opportunities created a pool of wealthy, middle-income, professional consumers with an annual per capita income that puts them among China's wealthiest. Since the onset of China’s reform program, the Pearl River Delta Economic Zone has been the fastest growing portion of the fastest growing province in the fastest growing large economy in the world.
According to the 2000 national Census, the Zone had a population of 40.8 million people. Per capita income has been growing substantially in recent years, as have consumer expenditures.
Although the Pearl River Delta Economic Zone encompasses only 0.4 percent of the land area and only 3.2 percent of the 2000 Census population of mainland China, it accounted for 8.7 percent of GDP, 35.8 percent of total trade, and 29.2 percent of utilised foreign capital in 2001. These figures show the remarkable level of economic development that the Pearl River Delta Economic Zone has achieved and the international orientation of the region’s economy. This orientation has attracted numerous investors from all over the world who use the Greater Pearl River Delta region as a platform for serving global and Chinese markets.
As of 2008, the Central Government has introduced new labor laws, environmental and new regulations to reduce pollution, industrial disputes, safer working conditions and protect the environment. The costs of producing low margin and commodity goods have increased. This is on top of the rising cost for energy, food, transport and the appreciation of the Reminbi against the falling US Dollar. Some manufacturers will need to cut costs by moving up the value chain or moving to more undeveloped regions.
Read more about this topic: Pearl River Delta
Famous quotes containing the word economy:
“Quidquid luce fuit tenebris agit: but also the other way around. What we experience in dreams, so long as we experience it frequently, is in the end just as much a part of the total economy of our soul as anything we “really” experience: because of it we are richer or poorer, are sensitive to one need more or less, and are eventually guided a little by our dream-habits in broad daylight and even in the most cheerful moments occupying our waking spirit.”
—Friedrich Nietzsche (1844–1900)
“The basis of political economy is non-interference. The only safe rule is found in the self-adjusting meter of demand and supply. Do not legislate. Meddle, and you snap the sinews with your sumptuary laws.”
—Ralph Waldo Emerson (1803–1882)