Shanghai’s Economy Grows Faster Than China’s Average After Nine Years

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Shanghai’s gross regional product increased by 5.4% last year, surpassing CNY 5.67 trillion (approximately USD 814.3 billion), marking its first year of outpacing the national growth rate since 2016. This growth was largely driven by the rapid expansion of strategic emerging industries.

For the first time since 2016, the city’s economy outgrew the national average in 2025, after years of just matching or lagging behind it. According to data from the municipal statistics bureau, Shanghai now ranks fifth among the world’s major cities in economic size.

The data revealed that the combined output of Shanghai’s industrial strategic emerging sectors rose by 6.5% last year, representing 45% of the total output of large industrial enterprises—defined as those generating at least CNY 20 million (about USD 2.9 million) annually. This was an uptick from 43.6% in 2024. The output from the city’s three leading manufacturing industries increased by 9.6% year-over-year, reaching over CNY 2 trillion.

Within these leading sectors, integrated circuit manufacturing saw a 15.1% increase, and artificial intelligence manufacturing grew by 13.6%. Although the full-year growth figure for biopharmaceutical manufacturing wasn’t disclosed, earlier data showed a 3.6% increase during the first three quarters of the year.

This trend indicates that the total output value of Shanghai’s strategic emerging industries is steadily nearing half of the city’s entire industrial output. The combined strength of the three pioneering sectors—along with other high-growth industries like new energy vehicles, advanced equipment manufacturing, aerospace, information and communication technology, new materials, and digital innovation—has become a fundamental pillar of Shanghai’s economic growth, said Shen Kaiyan, director of the Institute of Economics at a local academy of social sciences.

Further official figures showed that retail sales of consumer goods rose by 4.6% last year, outpacing the national average of 3.7%. Fixed-asset investments grew by 4.6%, compared to a nationwide decline of 3.8%. The city’s total foreign trade imports and exports reached CNY 4.5 trillion (around USD 649 billion), up 5.6%, exceeding the national growth rate of 3.8%. Notably, exports of innovative products such as integrated circuits, automobiles, and lithium batteries all experienced double-digit growth.

Shanghai has actively been fostering new productive forces, which are contributing to faster development of fresh economic drivers, injecting vitality and ongoing momentum into its economy. Zhao Wei, chief economist at a regional consulting firm, highlighted that recent policies aimed at improving the business environment have bolstered market confidence and expectations.

He also emphasized that the fast-paced development of the city’s modern industrial system has directly enhanced urban functions. Despite facing significant external uncertainties, Shanghai demonstrated resilient economic growth last year. Zhao pointed out that these achievements provide a strong foundation for fulfilling the objectives outlined in China’s 15th Five-Year Plan, beginning this year, especially as the city navigates opportunities and structural challenges simultaneously.