Customers shop for a new energy vehicle at a dealership in Nanhu district, Jiaxing, Zhejiang province, on Feb 21. [Photo/Jin Peng for China Daily]

Zhejiang's economy showed a solid start in the first two months of the year, with production accelerating and demand recovering, according to data released by the Zhejiang Provincial Bureau of Statistics on March 19.

The value added of industrial enterprises above designated size, defined as those with annual revenue of 20 million yuan ($2.86 million) or more, rose 9.8 percent year-on-year, 2.9 percentage points faster than the full-year growth rate in 2025. Of the province's 37 major industrial sectors, 32 recorded positive growth.

Demand indicators also improved, with investment, consumption, and exports expanding in tandem. Fixed-asset investment grew 1.0 percent year-on-year, while investment excluding real estate development increased 8.2 percent. Manufacturing investment rose 13.7 percent, and investment in high-tech industries increased 7.1 percent. Infrastructure investment accounted for 26.9 percent of the total.

Retail sales of consumer goods reached 633.5 billion yuan, up 4.9 percent year-on-year, 0.9 percentage points higher than the full-year growth rate in 2025. Consumption of essential goods remained stable, while demand for higher-quality products strengthened.

Exports rose 21.4 percent in the first two months, outpacing the national average. Exports of mechanical and electrical products reached 366.2 billion yuan, up 21.9 percent, supported by global demand for new energy, artificial intelligence, and high-end manufacturing products.

Private enterprises continued to play a central role. The value added of private industrial enterprises above the designated size increased 10.6 percent, contributing 7.4 percentage points to overall industrial growth. Private firms' imports and exports totaled 827.1 billion yuan, up 20.5 percent and accounting for 83.6 percent of the provincial total.