Shanghai economy to grow 5.3% in 2023, says think tank

10 Jan 2023

According to findings from a government-backed think tank, economic output in Shanghai is forecast to increase by 5.3% in 2023.

As per a report published by the Institute of Economics of the Shanghai Academy of Social Sciences on Monday, the municipal government is to boost investment in infrastructure and construction, bolster cities’ digital transformation and further increase fixed-asset investments. 

The report suggests that Shanghai’s attractiveness to foreign investors is intensifying, direct investments have been increasing, and Shanghai’s foreign trade is growing. According to the think tank, consumption in the city will sustain fast growth, with the healthcare, catering and new energy vehicle sectors increasing more than forecast. 

Nevertheless, Shanghai is still facing challenges in the short term, says the institute. As well as reporting a larger drop in real estate fixed-asset investment than Beijing and Shenzhen over the past year, export demand is weakening. The findings suggest Shanghai needs to boost its competitiveness and resilience of the industrial supply and innovation chain and increase the added value of importing and exporting. 

Furthermore, the institute’s report proposes Shanghai needs to implement policies to bolster investment demand. The city needs to encourage investments in industries and real estate and enhance SMEs' financing environment.

In addition, the research highlights the need for Shanghai to improve its scientific and technological innovation as well as boost the digital economy over the medium and long term.