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Hainan's economy grew by 3.5% in 2020 despite coronavirus pandemic

The service sector of the province showed great progress over the past 12 months

HAIKOU, January 21. /TASS/. Hainan's gross regional produc in 2020 increased by 3.5% to 553.23 billion yuan ($ 85.51 billion at current exchange rates), despite the difficult epidemic situation in the world, announced the propaganda department of the regional party committee on Thursday.

Thus, the dynamics of Hainan's economic development turned out to be noticeably higher than the growth rate of China's GDP, which over the same period amounted to 2.3%.

According to the published data, the service sector of the province showed great progress over the past 12 months (an increase of 5.7%). As Chinese economists have repeatedly emphasized, stimulating this segment of the economy is of great importance, since this is one of the main factors in increasing the well-being of the island's population. 

Hainan's agricultural sector remained stable in 2020, increasing by 2%. Hainan has made especially noticeable progress in the field of pig breeding: the livestock increased by 52.6%, to 2.48 million animals. As a result, the local authorities have significantly improved food security.

Due to the negative impact of the pandemic, affecting international shipments around the world, the dynamics of industrial growth in Hainan decreased slightly last year (minus 1.2%). However, the performance of a number of industrial sectors was high. For example, the production of polyethylene terephthalate, a popular petrochemical product, from which bottles for soft drinks, auto components, medical and electrical products are made, increased by 12.8%.

According to statistics, in 2020, the province was dynamically developing construction (an increase of 3.7%) and the cement industry closely related to it (an increase of 6.5%). According to local experts, the rise of these industries is largely due to the active implementation of a program to create and optimize big infrastructure facilities — airports, highways, factories and warehouses.