Report: Nanyang private economy growing strong

The private economy in Nanyang is showing strong momentum and expanding with increased research and development (R&D) expenses and optimized structure, according to the 2016 Report of Private Economy Development in Nanyang released by the city's Statistics Bureau.

In 2016, the added value of the private economy reached 192 billion yuan ($29 billion), accounting for 61.6 percent of the total GDP, and a year-on-year increase of 11.5 percent. The tax revenue of private industry stood at 14 billion yuan, accounting for 70.7 percent of the total tax revenue.

There are 2,310 industrial enterprises above designated size in Nanyang, of which 2,240 are private enterprises. The industrial added value of private enterprises makes up 84.8 percent of the total industrial added value, up 3.8 percent year-on-year.

The industrial structure of private economy is also improving, according to the report. In 2016, of all private companies, the proportions of companies in first industry, second industry and tertiary industry were 5.4, 22.1 and 72.5 percent respectively.

Innovation is a key driving force of sustainable growth for private companies. In 2016, the number of private companies engaged in R&D increased by 26.5 percent to create a total of 86. The R&D expenses in the city were 532 million yuan, an two-fold increase.

According to the report, existing problems for private companies in Nanyang lie in lack of financing and competitiveness. Nanyang will carry out in-depth analysis and formulate a series of measures to tackle these problems and promote the healthy development of the private economy in the city.