Zhejiang has been persisting in pursue of a scientific outlook on development，and its economy has achieved sound and fast growth. In 2006, the provincial GDP rose to 156.49 billion yuan, up by 13.6% over that of 2005, and the per capita GDP was 31,684 yuan (US$ 3,975 by annual average exchange rate), up by 11.6% over that of the previous year. The total fiscal revenue was 256.8 billion yuan, and the local fiscal revenue was 129.8 billion yuan. The GDP, per capita GDP and total fiscal revenue all stood in the first row in the whole nation.
Structure of Industries
Currently, the ratio of the first, second, and tertiary industrial sectors in Zhejiang is 5.9:53.9:40.2. The industrial structure takes light industry as the main sector, but heavy and chemical industries have become major factors for economic growth in the province. Non-industrial textiles and electro-mechanical products in Zhejiang are highly competitive in the international markets. Manufacturing industries of chemical fibers, leather processing, textiles, handicrafts, and garments have remarkable competitive advantages in domestic and even overseas market. In 2006, the provincial industrial added value was 753.8 billion yuan, including 565.5 billion yuan accomplished by industries over certain scales. The sales rate of industrial products reached 97.9%, the highest since 1992.Zhejiang has a large number of medium- and small-size enterprises. There are over 300,000 medium- and small-size enterprises in the province, which make up 99% percent of the total enterprises. Among the National 500 Quick Climbing Medium- and Small-size Enterprises, 21 percent are from Zhejiang, which made it the province with the largest number of quick climbing medium- and small-size enterprises in the country. A number of enterprises with high market shares, strong competitiveness and leading positions in their respective sectors in the country have emerged, such as the Wahaha Group Co., Wanxiang Group Co., and Zhejiang Nice Chemical Industry Co. Ltd.
Structure of Ownership
Zhejiang has achieved breakthroughs in the reform of ownership system, and the gross state-owned assets and the operational efficiency have both increased significantly in Zhejiang, and the competitiveness and control capacity of state-owned economy have been further strengthened. Stated-owned and controlled industries occupy high proportions in sectors like electrics, telecom, tap-water and gas supply, in capital-intensive raw material industries such as chemicals and metallurgy, and in newly developed technology-intensive industries such as electronics and pharmaceuticals. The SOEs have also created favorable conditions for the development of the private economy through dissemination of products, technology and equipment.Private economy is comparatively developed in Zhejiang. At the end of 2006, there were about 410,000 private enterprises in the province. In 2006, among the Top 500 Private Enterprises with Comprehensive Strength in China, 202 are from Zhejiang, while among the Top 50 Private Enterprises with Innovation and Creation Capacities in China released by China Academy of Social Science, nineteen are from Zhejiang.
Economy of Regional Characteristics
Economy of regional characteristics is flourishing in Zhejiang. It covers dozens of areas including manufacturing, processing, construction, transport, cultivations, textiles, industrial trade, and service, as well as over 100 industrial sectors and over 30 processing sections of agricultural subsidiary products. According to statistics, the total industrial output value of economies with typical regional characteristics in Zhejiang makes up 49 percent of the provincial total. Low-voltage electrical appliances from Yueqing, leather garments from Haining, metal products from Yongkang, pearls and Datang socks from Zhuji, and crystal handicrafts from Pujiang all enjoy nationwide acclaim. Through collective development, private economy in Zhejiang built up a batch of influential economic regions in the country, which effectively lifted the market share and competitive power of Zhejiang products. Investigations reveal that there are over 500 regional economic clusters in the province, each with an industrial output value of more than 100 million yuan, in which over 50 economic clusters boast more than 30 percent of the domestic market share.
Zhejiang is renowned as a Great Province of Markets in China. Specialized markets in Zhejiang are prosperous. Trading markets are not only numerous but also large in scale, strong in comprehensive capabilities and have radiating impacts. The scope of commodity transaction primarily covers all fields of livelihood and production materials. A network of commodity trade has thus been established with consumer goods markets as the core, specialized markets as the distinctive feature, productive material markets as the backup and other factor markets as complimenting elements. In 2006, there were 4,064 trading markets in the province with a combined turnover of 824.7 billion yuan which has led the country continuously for 16 years. The Yiwu China Commodities City and Shaoxing China Light Industrial Products and Textiles City are China's two largest specialized markets. In 2006, the turnover of the two "cities" reached 31.5 and 30.1 billion yuan respectively. These figures put them at the top of the list of markets in China. People from Zhejiang have also set up a number of "Zhejiang Commercial Cities", "Wenzhou Streets" and other markets in different parts of the country and even in many foreign countries.