Shanghai GDP Grows 5.9% in Q1, Fastest Pace in 5 Years

Shanghai's economy grew at its fastest pace in five years in the first quarter this year, thanks to strong performance in the manufacturing, finance, trade and high-tech industries. The growth showcased a good start for the 15th Five-Year (2026-2030) Plan; indicating the city's resilience in a highly uncertain global business environment.

The city's gross domestic product (GDP) amounted to 1.35 trillion yuan (US$198 billion) between January and March, up 5.9 percent year on year. The growth was the strongest since 2021 and faster than the national average rate of 5 percent, the Shanghai Statistics Bureau said on Wednesday.

Industrial output increased 6.2 percent during the period – the first time it has exceeded the city's GDP growth in recent years, which also beat the national industrial output growth of 6.1 percent in the same time period.

By industry, the city's three leading industries, namely, integrated circuits, artificial intelligence and biomedicine, presented particularly stellar performances, with output expanding 21.3 percent, 19.2 percent and 9.6 percent, respectively. The production of new-energy vehicles, one of the city's strategic emerging industries, surged 34.9 percent during the period.

Shanghai's retail sales also reported faster growth. It accelerated 5.5 percent year on year in the first quarter, with consumption of sports and entertainment products surging 19.4 percent.

Fixed asset investment advanced 7.6 percent in the first quarter, while investment in manufacturing jumped a 22.8 percent – a harbinger of better industrial performance in the future. The investment in new commercial properties remained flat.

Financial market activity boomed with transaction volume surging 35.7 percent to 1,142.84 trillion yuan in the first three months. At the same time, Shanghai's trade gained 21.9 percent to 1.23 trillion yuan, with exports of electric vehicles more than doubling.

The economic growth translated into more money in the pockets of residents. The average disposable income in Shanghai reached 26,689 yuan in the first quarter, up 2.6 percent.

Shanghai has set an economic growth target of about 5 percent for 2026, and last year, the city's growth rate settled at 5.4 percent.