Shanghai reports GDP drop in H1, positive signs in June

Although the resurgent epidemic dragged Shanghai's GDP down by 5.7 percent year-on-year in the first six months of 2022, major economic indicators show signs of recovery thanks to the stabilizing and stimulative policies introduced earlier this year, the municipal government said on Monday.

Data from the Shanghai municipal bureau of statistics showed the city's GDP came at 1.93 trillion yuan ($286.6 billion) in the first half of 2022, about 94.3 percent of the size realized during the same period last year. While industrial added value contributed by companies with an annual sales revenue of at least 20 million yuan dropped 11.3 percent on a yearly basis in the first six months, these companies managed to report an average 13.9 percent year-on-year increase in June.

Strategic emerging industries have played a significant role in Shanghai's economic recovery. New energy vehicle makers saw their combined output spike 57.2 percent in the first six months, and that of new-age information technology providers was up 8.2 percent. The total output of Shanghai-based integrated circuit companies jumped 13.3 percent year-on year and that of the artificial intelligence industry was up 14.7 percent.

Finance, trade and shipping -- sectors reflecting Shanghai's economic strength -- have remained steady. Transactions made at the various financial markets in Shanghai totaled 1,362 trillion yuan in the first half of this year, up 16.8 percent from a year earlier.

The total value of imports and exports realized in Shanghai reached 4.71 trillion yuan in the first half of the year, only moderately down 0.6 percent year-on-year amid the disruptions brought by the epidemic. It should be noted the value of imports and exports surged 9.6 percent in June year-on-year to 374 billion yuan.

In addition, the international standard container throughput of the Shanghai International Port exceeded 22.55 million twenty-foot equivalent units in the first half of this year, overtaking all other ports in the world. The daily container throughput of the Shanghai International Port topped over 130,000 TEUs in the first 10 days of July, outnumbering the scale during the same period in 2021.

Foreign investors' confidence in Shanghai remains unchanged. The city attracted more than $12.47 billion in foreign investment in the first six months, up 0.2 percent year-on-year. A total of 26 multinational companies located their regional headquarters in Shanghai during the first half, with another 10 foreign companies setting up regional research and development centers in the city.

Shanghai saw total sales revenue of consumer goods drop 16.1 percent year-on-year to 759 billion yuan in the first half of the year. But the year-on-year decline narrowed by 32.2 percentage points in June to come in at 4.3 percent. Meanwhile, online retail sales climbed 0.9 percent year-on-year to 173 billion yuan in the first six months.

In late May, the municipal government of Shanghai announced 50 stimulative policies to facilitate economic recovery, including reducing taxes, cutting fees and providing subsidies for companies hit hard by the epidemic.