The Hefei National High-Tech Industry Development Zone [Photo/WeChat account: hefeigaoxinfabu]

The Hefei National High-tech Industry Development Zone saw a V-shaped economic recovery in the first half of the year after being pummeled by the COVID-19 epidemic, according to a H1 report by the local government on July 25.

Statistics showed that the zone'GDP growth rate and several other major economic indicators ranked first among the four development zones in Hefei in the first half.

Its GDP registered 3.4 percent year-on-year growth in the first half, and was up 12.6 percent year-on-year in the second quarter.

Its industrial production saw a sharp increase of 4.9 percent after suffering a decline in the first quarter. During the first half of the year, 111 industrial enterprises saw growth, among which 12 saw double-digit growth. The output of the electronic information industry and the new energy industry recovered rapidly, with the growth rate increasing by 11.1 percent and 34.4 percent, respectively, over the first quarter.

Furthermore, project investment in the Hefei hi-tech zone increased by 4.6 percent. From January to June, total investment in new infrastructure projects reached 6.15 billion yuan ($878 million), with completed investment reaching a value of 2.3 billion yuan, accounting for 16.2 percent of all investment in the zone. This boosted investment in the zone by 12.8 percent, turning overall growth in the first half from negative to positive.

The electronic information industry, photovoltaic new energy industry, and automobile and supporting industries, as the zone's key industries, continued to grow along with emerging industries. Their combined output value increased by 6.9 percent in the second quarter, 16.7 percent higher than in the first quarter.

Scientific and technological innovation in the zone continues to increase, while the revenue of the high-tech service industry above designated size increased 3.7 percent year-on-year, 27.3 percent higher than that of the district's overall service industry above designated size and accounting for 67.5 percent of the district's entire service industry above designated size.

The online economy is also booming, improving the zone's economic structure. In the first half of the year, online retail sales of physical goods in the zone were valued at 3.31 billion yuan, an increase of 32.9 percent and accounting for 34.1 percent of total online retail sales.

According to the report, the new economy represented by mobile internet, 5G, and new infrastructure has been a strong driver behind the zone's economic recovery since the epidemic and has contributed to 70 percent of the industrial output value.