Shanghai’s economy shrank nearly 14 percent as the lockdown took its toll

Shanghai’s economy shrank nearly 14 percent in the second quarter as a two-month lockdown at the financial and trade hub closed factories, curbed consumer spending and disrupted operations at the world’s largest port.

Regional data released by China’s Bureau of Statistics on Friday showed that the two places with the tightest virus restrictions last quarter — Shanghai and Jilin — had the worst economic performances, another sign of the damage the country’s Covid-zero policy is doing government has done to the second largest in the world. largest economy.

Shanghai’s economy shrank 13.7 percent year on year, the largest contraction among China’s provinces and municipalities. In Jilin – which also imposed a lockdown to curb Covid infections – GDP shrank by 4.5%. General government revenue in Shanghai collapsed 12.9% in the first half of the year, compared with a 4.7% increase nationwide, showing the impact of Covid controls on government finances.

Economic output in Beijing, which imposed less stringent restrictions in the second quarter, fell 2.9 percent, the third-largest contraction among all provinces.

Gloomy developments in Shanghai and Jilin helped push the economy’s overall growth to 0.4 percent in the three months to June, the slowest pace since the first virus outbreak and Wuhan’s lockdown in early 2020.

Although retail sales rebounded in June as Covid outbreaks and restrictions eased, infections have continued to surface and fears of a new tightening of controls have grown. That poses a threat to the recovery and makes it difficult to meet the government’s growth target of around 5.5 percent. Shanghai’s economy shrank nearly 14 percent as the lockdown took its toll

Fry Electronics Team

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