Shanghai economy shrinks 1st time ever on COVID lockdown

China's key financial hub logs 0.2% dip in 2022

20230120N Shanghai

Shanghai's Lujiazui financial district. A two-month COVID lockdown dealt a heavy blow to business and consumer activity in the city last year. © Reuters

TOMOKO WAKASUGI, Nikkei staff writer

SHANGHAI -- Shanghai's economy contracted 0.2% in real terms for 2022, its statistics bureau said Friday, marking the city's first negative growth since tracking began in 1978.

The downturn from 2021's 8.1% growth resulted largely from Shanghai's two-month lockdown last spring under China's strict zero-COVID policy. The move forced factories to suspend production and disrupted supply chains.

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