(Yicai) April 23 -- Shanghai's economy expanded 5.9 percent in the first quarter of the year from a year earlier, marking the fastest growth rate for the period since 2022.

Shanghai's gross domestic product totaled CNY1.35 trillion (USD197.7 billion) in the three months ended March 31, the local statistics bureau announced yesterday. Its growth outpaced the national rate of 5 percent.

Shanghai's economy has achieved a strong start to the year, mainly due to the proactive implementation of policy measures and the gradual effectiveness of long-term investments in leading and strategic emerging industries, Ma Haiqian, deputy director of the Shanghai Academy of Development and Reform, told Yicai.

The eastern city's industry, consumption, investment, and foreign trade figures all surpassed the national average in the first quarter. Key industries, including new energy vehicles and integrated circuits, are experiencing rapid expansion.

The manufacturing output of Shanghai's three leading industries -- artificial intelligence, biomedicine, and IC -- climbed 16 percent in the first quarter from a year earlier. The IC industry was the fastest-growing one at 21 percent, followed by AI at 19 percent and biomedicine at 10 percent.

The output of strategic emerging industries increased 9 percent in the period, with NEVs up 35 percent and high-end equipment up 9 percent.

The added value of industrial enterprises above the designated size in the city expanded 6.2 percent in the first quarter from a year ago, compared with a 3.7 percent growth a year earlier. The rise was also higher than the national average of 6.1 percent.

In recent years, geopolitical conflicts have led to a diversification of global supply chains, which has further highlighted Shanghai's competitiveness in high-end manufacturing and new energy, Shen Kaiyan, director of the Institute of Economics at the Shanghai Academy of Social Sciences, told Yicai. The surge in exports of high-tech products, including IC and electric vehicles, has driven local industrial production, she added.

Shanghai's total retail sales of consumer goods jumped 5.5 percent in the first quarter from a year earlier, while fixed asset investment climbed 7.6 percent, both figures significantly higher than the national average rates of 2.4 percent and 1.7 percent. 

Shanghai's total foreign trade volume surged 22 percent, also outpacing the national average of 15 percent, with imports and exports up 27 percent and 16 percent, respectively. Exports of solar cells, EVs, and lithium batteries skyrocketed 184 percent, 135 percent, and 99 percent, respectively, while those of IC grew 15 percent.

The added value of the city's financial sector rose 10 percent in the period, with the transaction volume in major financial markets up 36 percent. As of March 31, the deposits and loan balances of financial institutions in the city had risen 13 percent and 6 percent, respectively, from a year earlier.

Against the backdrop of escalating tensions in the Middle East, fluctuations in global demand, and other external uncertainties, Shanghai has achieved balanced development across manufacturing, technological innovation, services, investment, consumption, and foreign trade, Shen said. This has led to the formation of a diversified economic foundation that can effectively mitigate singular risks, reflecting the strong resilience of the economy, she noted.

In the first quarter, Shanghai's consumer price index increased 0.6 percent from the same period last year, and the per capita disposable income of residents grew 3.6 percent to CNY26,689 (USD3,910). The average urban surveyed unemployment rate stood at 4.1 percent.

Editors: Dou Shicong, Futura Costaglione