Shenzhen's first-quarter GDP grows 5.2%

Overview

The Shenzhen Municipal Bureau of Statistics released first-quarter economic data on April 28, 2025. Shenzhen's gross domestic product reached 895.05 billion yuan in January–March, up 5.2% year on year at constant prices. According to Jiemian and other media, this growth rate was higher than the 4.1% recorded for Guangdong Province as a whole and ranked second among China's four first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen. It was, however, slightly below the city's annual target of 5.5%.

Background

Shenzhen's economy is heavily weighted toward manufacturing, centered on electronics and information technology. In recent years, emerging industries such as new energy vehicles, drones and robots have become key drivers of growth. Entering 2025, uncertainty in the global trade environment increased, and attention focused on export trends and the recovery of domestic demand.

These figures are the first quarterly results for 2025. They were closely watched both as a gauge of progress toward the annual growth target and as an indicator of the resilience of Shenzhen's economy amid a changing global trade environment.

Key Points

Indicator	Q1 2025
GDP	895.05 billion yuan (+5.2%)
Secondary industry	295.14 billion yuan (+3.7%)
Tertiary industry	599.42 billion yuan (+6.0%)
Industrial value added (above designated size)	+4.2%
Retail sales of consumer goods	240.32 billion yuan (+3.1%)
Total goods trade	990.10 billion yuan (-2.8%)
Exports / imports	585.51 billion yuan (-8.7%) / 404.60 billion yuan (+7.1%)

• Autos: value added in auto manufacturing rose 56.3%. Shenzhen-based BYD sold about 1 million vehicles in the quarter, up 59.81%, including about 210,000 overseas
• High-tech products: output of civilian drones rose 48.2%, industrial robots 40.1% and 3D printers 38.0%
• Emerging industry clusters: intelligent connected vehicles grew 38.8%, robotics 38% and the low-altitude economy and aerospace 22.3%
• Investment: industrial investment rose only 1.4%, while investment in technical upgrading increased 61.8%
• Consumption: sales of household appliances and audio-visual equipment rose 59.3%, suggesting an effect from trade-in support policies
• Cross-border travel: border crossings exceeded 64 million, up 15.2%

What It Means for Japan–Shenzhen Exchange

While exports fell, imports grew 7.1%, indicating a shift in Shenzhen's trade structure. Attention is turning to demand trends in areas where Japanese companies are strong, such as semiconductors, electronic components and manufacturing equipment. Expanding output of vehicles, drones and robots is also seen as relevant to business opportunities for Japanese firms in parts, materials and production equipment.

The tertiary sector grew 6.0%, the fastest among first-tier cities, and cross-border travel increased markedly. This suggests that Shenzhen is strengthening its role as a hub for consumption, tourism and business exchange. For Japanese companies, interest in Shenzhen not only as a manufacturing base but also as a market and a source of partners is likely to continue.

Shenzhen's tertiary sector reached more than 599.4 billion yuan, exceeding that of Guangzhou, also in Guangdong Province, at more than 579.0 billion yuan. The expansion of services is seen as relevant to business opportunities for foreign-invested companies in areas such as finance, logistics, software and professional services.

In addition, technical upgrading accounted for 38.7% of industrial investment, which suggests that existing factories are pressing ahead with automation and digitalization of their equipment. Interest in Japanese products and technologies in fields such as machine tools, robots and inspection equipment may therefore continue.

Outlook

According to Shenzhen Customs, total trade in March alone reached 387.05 billion yuan, up 12.3% year on year, with exports up 8.8% and imports up 17.2%, pointing to a recovery toward the end of the quarter. External uncertainty nevertheless remains high, and the trade outlook from April onward is unclear. What additional measures Shenzhen may take to reach its 5.5% annual target has not yet been made clear.

From the Association

Shenzhen's economic performance is an important reference for Japanese companies with ties to the city. The Association will continue to follow statistics and policy developments and to provide information and opportunities for exchange to its members.