Changsha’s economy is growing rapidly, with a focus on services and manufacturing

Changsha is one of China’s top 20 “economically advanced” cities. Its gross domestic product (GDP) has grown at an average of 14 percent per year from 2002 to 2006, compared with the national average of 10 percent.

In 2006, the service sector represented half of Changsha’s GDP , up 117 percent since 2002; this sector is expected to continue to drive the city’s economic development.

The manufacturing and construction sectors have also grown steadily, increasing 128 percent from 2002 to 2006.

The primary industry sector (agriculture, forestry, animal husbandry and fishery) has grown only slightly over this period.

There are several key industries within the manufacturing sector

Manufacturing continues to be a pillar of the local economy, with production reaching USD 16.2 billion(a) in 2005, an annual average growth of 18 percent from 2001.

． The machinery industry generated USD 2 billion (a) by 30 enterprises in 2006

．Automotive industry production was approximately USD 1.1 billion (a)

．Electronic information sector production reached approximately USD 780 million (a)

． Other key sectors are Advanced Materials, Traditional Chinese Medicine and Home Appliance

A number of other cities within an hour’s drive from Changsha form an “Economic Circle”

Eight cities are within a one-hour drive from Changsha: Zhuzhou, Changde, Yiyang, Xiangtan, Yueyang, Hengyang, Shaoyang and Loudi.

These cities have growing economies in their own right, but with strong economic and transport links to Changsha form an “Economic Circle” around Changsha. Together with Changsha, these cities form an extended economic region with a GDP of USD 58.4 billion, comprising 70 percent of Hunan province’s 2005 GDP (USD 83 billion).