Hangzhou's renowned riverside CBD. [Photo/IC]

East China's tech hub Hangzhou posted a solid start to the first year of its 15th Five-Year Plan (2026–30), with first-quarter GDP reaching 610.9 billion yuan ($89.5 billion), up 5.6 percent year on year, according to the Hangzhou municipal bureau of statistics.

The growth rate outpaced the national average and marked a 0.4 percentage-point increase over both last year's full-year and first-quarter figures, signaling steady momentum as the city aims to become a 3-trillion-yuan economy.

Both industry and services expanded faster than headline GDP, highlighting a more balanced growth structure. Value-added industrial output rose 6.3 percent to 112.6 billion yuan, driven by sectors such as electronics, automobiles and specialized equipment manufacturing. The services sector, which accounted for 77.7 percent of overall growth, increased 5.7 percent to 470.5 billion yuan.

New growth drivers continued to gain traction. Output in the core digital economy manufacturing sector climbed 11.7 percent, while high-tech manufacturing grew 9.5 percent. In services, revenues in digital and high-tech segments rose 16.5 percent and 14.4 percent respectively in the first two months.

External demand remained resilient despite global uncertainties. Exports of mechanical and electrical products grew 12.2 percent to 78.2 billion yuan, while high-tech product exports rose 12.1 percent. Private enterprises accounted for 79.1 percent of total exports, with outbound shipments up 13.4 percent.

Investment in advanced manufacturing also surged, with spending on electronics and general equipment manufacturing jumping by more than 40 percent, contributing to a 14.5 percent increase in overall manufacturing investment.

Consumer activity continued to recover, with retail sales rising 3.9 percent to 215.5 billion yuan. Demand for upgraded goods was particularly strong, as sales of wearable smart devices surged more than threefold.

Meanwhile, per capita disposable income reached 26,307 yuan, up 4.7 percent, with rural income growth outpacing urban levels, further narrowing the income gap.

An emerging high-tech park in Hangzhou. [Photo/IC]