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Shanghai narrows its contraction

By SHI JING in Shanghai | CHINA DAILY | Updated: 2020-07-22 09:13
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Aerial photo taken on Oct 15, 2019, shows a view of the Lujiazui area in Shanghai. [Photo/Xinhua]

With outbreak under control, leader says metropolis back on right track

Boosted by the growth of emerging industries and the unaffected confidence of foreign investors, Shanghai has narrowed its half-year economic contraction while a great deal of effort was made to contain the COVID-19 epidemic, showing the city's strong growth resilience and potential, the municipal government told a session of the Standing Committee of the Shanghai Municipal People's Congress held on Tuesday.

While the city's GDP growth dropped by 6.7 percent in the first three months of the year, it contracted by only 2.6 percent during the first six months as a result of positive GDP growth in the second quarter, according to the municipal government.

Industries that were more significantly affected by the COVID-19 epidemic have shown signs of recovery.

The added value of the service industry reported a minor year-on-year decrease of 0.6 percent in the first half.

Shanghai's newly elected Mayor Gong Zheng said during the meeting on Tuesday that the city's economic development has returned to the right track, with major economic indicators showing positive results.

More efforts should be made during the second half of the year to help the recovery of production, boost domestic demand, stabilize overseas market demand and deepen reform and opening-up so that Shanghai can better play its role as the strategic link between the domestic and international markets, he said.

The city's total fixed asset investment increased 6.7 percent from January to June, and the investment in the manufacturing industry has maintained double-digit growth for 10 consecutive quarters.

The total value of exports managed to register 0.7 percent year-on-year growth during the first six months.

Buoyed by the two-month May 5 Shopping Festival, the city's total retail sales of consumer goods realized positive growth in May and June.

Foreign investors' confidence in Shanghai's potential and China's economic growth was not impaired by the epidemic.

While the growth of the foreign investment was already as high as 13.9 percent during the first half of last year, the number has climbed further despite the epidemic.

The financial industry was the major driver of economic growth. The added value of the industry registered in the city ticked up 7.4 percent from a year earlier, and the total trading volume of the city's financial market jumped 13.4 percent year-on-year during the first half of 2020.

The emerging industries have shown more potential amid the epidemic.

The output of the strategic industries increased 5.5 percent during the first half of the year, of which the rapid growth of new energy vehicles has provided the most impetus.

The sales of online retailing spiked by 14.3 percent from January to June, while other new technologies such as artificial intelligence, blockchain and 5G have also provided a positive outlook.

While efforts have been made to control and prevent the epidemic, living standards of the residents in Shanghai have not been impaired. On the contrary, the disposable income per capita reached 36,577 yuan ($5,235), up 3.6 percent year-on-year.

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