Shanghai Tops China's GDP Growth Rate for First Time in Eight Years Due to Restructuring
Yicai Global
/SOURCE : Yicai
Shanghai Tops China's GDP Growth Rate for First Time in Eight Years Due to Restructuring

(Yicai Global) Jan. 23 -- Shanghai outperformed the national economic growth rate for the first time since the 2008 global financial crisis as China's largest city takes measures to restructure its growth model.

Gross domestic product rose 6.8 percent to CNY2.7 trillion (USD394 billion) in 2016 from a year earlier, according to figures released by Shanghai's municipal government based on calculations at comparable prices. GDP increased by 6.9 percent in 2015. Last week, the National Bureau of Statistics said China's economy expanded 6.7 percent last year.

"The decline of economic growth rate is shrinking and the rate of economic growth is gradually stabilizing," said Tang Huihao, chief economist of the Shanghai Municipal Bureau of Statistics.

A municipal government official told Yicai Global that it shows Shanghai's economic restructuring is taking affect.

In recent years, Shanghai has done a lot of work in nurturing new technologies, industries, formats and models, Mayor Ying Yong said. For example, new energy, new energy vehicles and medical equipment have become Shanghai's new economic growth points, he added.

In 2008, Shanghai's GDP grew by 9.7 percent, its first single-digit growth rate in 17 years. In the following years, Shanghai's growth fell below the national average until 2015, when its growth rate was on par with the average.

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