China’s second, third-tier cities lead the way in economic recovery as zero-Covid holds up Beijing, Shanghai

Despite a pickup in China’s overall third quarter gross domestic product (GDP), major cities including Beijing and Shanghai are still recovering at a slower pace, with the stringent zero-Covid policy creating uncertainty for the overall economic recovery, analysts said.

Beijing’s GDP grew by 0.8 per cent in the first three quarters this year compared to the same period last year, while Shanghai’s economy showed a slight rebound and recorded a 1.4 per cent decline compared to a national average growth of 3 per cent.

Shanghai was buffeted by a two-month long lockdown earlier this year, which brought most industrial and service activities to a halt, resulting in its GDP falling by 5.7 per cent in the first half of the year.