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Is the gap between Los Angeles and Shanghai growing?

Updated: Jun 5



In 2007, the GDP of Los Angeles reached $422 billion, while Shanghai's GDP was only $160 billion, a difference of $262 billion.

Today, after 17 years of development, China has become the world's second largest economy, Shanghai's economy has also achieved rapid growth, but the gap between the GDP of Los Angeles and has widened to $611.4 billion.


So what is the difference between Shanghai and Los Angeles? When will Shanghai overtake Los Angeles?



In 2007, Los Angeles achieved a GDP of $422 billion, which was driven by the strong performance of its manufacturing, wholesale and retail, and IT information industries, which became the main driving force of economic growth in Los Angeles.

The steady development of the manufacturing industry has ensured Los Angeles's important position in the global supply chain, while the prosperity of the wholesale and retail industry has highlighted its attraction as a consumer market center, and the rise of the IT information industry means that Los Angeles is moving towards a solid step towards the transformation of the knowledge economy.



However, there are also hidden worries. In 2007, although Los Angeles enjoyed the dividend of high per capita income and low unemployment rate, the risk of financial deficit and the signs of decline in some traditional industries began to appear, which reminded Los Angeles that it must adjust its economic structure and upgrade its industries to better cope with new challenges.

As one of China's most economically developed cities, Shanghai began as a humble fishing village on the banks of the Huangpu River.


However, from 2007 to 2023, Shanghai's economic aggregate achieved impressive growth, with GDP soaring from $160 billion to $4721.9 billion. Behind this amazing growth is a direct reflection of Shanghai's sustained and rapid economic development.


Not only has the total volume increased significantly, but the per capita GDP has also increased significantly, thanks to Shanghai's core position in international trade, efficient and developed port logistics system, and forward-looking layout for emerging industries.

Although there is still a large gap between Shanghai's GDP and that of Los Angeles in 2023, in fact, Shanghai is already gradually narrowing the distance with Los Angeles.


In 2007, the GDP of Los Angeles was 2.6 times that of Shanghai; by 2023, the GDP of Los Angeles is only 1.9 times that of Shanghai. Although the amount difference is large, considering the inflation of the past two decades, the change is quite significant.

In addition, Los Angeles faces increasing challenges in tourism, manufacturing and other fields, as well as slowing economic growth, while Shanghai maintains a rapid development trend by virtue of its free trade zone policy, its status as an international metropolis and the Yangtze River Delta integration development strategy.


Based on the current economic growth rate and development potential of Shanghai, many economic experts predict that Shanghai is expected to surpass Los Angeles in a certain period of time.

Although Shanghai and Los Angeles differ in their economic development paths, they both show their success and development potential, which reflects the diversity of urban development in the context of globalization.


To sum up, although Shanghai has not completely surpassed Los Angeles at present, its strong growth potential and clear development path indicate unlimited possibilities in the future.

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