"Lockdown Impact" Shanghai's Q2 Growth Rate at -13.7%

Beijing, Jiangsu Province, Jilin Province, and Other Regions Also Experience Negative Growth

[Image source=Yonhap News]

China's economic growth rate for the second quarter of this year recorded 0.4%, with the economic shock in Shanghai, known as the 'economic capital of China,' which was hit hardest by the lockdown, being particularly severe.

According to the National Bureau of Statistics of China on the 16th, Shanghai's Gross Domestic Product (GDP) growth rate for the second quarter was -13.5%, the lowest among China's 31 provincial-level administrative regions. Shanghai experienced a particularly severe economic shock in the second quarter, resulting in a first-half economic growth rate of -5.7%.

Shanghai, a city of 25 million people and a financial, commercial, and trade hub of China, was locked down for more than two months from the end of March to May due to the spread of COVID-19, causing a paralysis in production, investment, and consumption overall.

Besides Shanghai, the second-quarter economic growth rates of four other provincial-level administrative regions?Beijing, Jilin Province, Jiangsu Province, and Hainan Province?also remained in negative territory at -2.9%, -4.5%, -1.1%, and -2.5%, respectively. Most of these regions were either fully or partially locked down due to the spread of COVID-19. Although Hainan Province did not experience a severe COVID-19 outbreak, its economy contracted in the second quarter as key industries such as tourism and shopping were hit by the lockdown effects in high-income metropolitan areas like Shanghai and Beijing.