Shanghai Expects GDP to Rise

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Last updated at: (Beijing Time) Saturday, February 23, 2002

Shanghai Expects GDP to Rise

The gross domestic product of Shanghai, China's leading industrial center, is expected to increase by 9 to 10 percent this year.

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The gross domestic product of Shanghai, China's leading industrial center, is expected to increase by 9 to 10 percent this year.

The figure is slightly lower than the 10.2-percent growth, valued at 49.5 billion yuan (5.96 billion U.S. dollars), in 2001, according to acting mayor Chen Liangyu.

The city maintained a double-digit economic growth for the past10 consecutive years.

Chen's prediction was based on both challenges and opportunities the city faces in the coming years.

"The current sluggishness of the world economies has put Shanghai in a position even tougher than 1997's Asian economic crisis," Chen said at the on-going session of the Municipal People's Congress.

A direct influence of the global slowdown will be on the city'sexports. Last year, the total volume of the city's exports reached27.63 billion US dollars, nine percent higher than 2000.

However, the probability of maintaining such rapid increases islow this year, Chen said, adding that a moderate target of 29 billion US dollars worth of exports is expected.

This year is the first year after China entered the World TradeOrganization. Keener competition from outside rivals in the domestic market has added more pressure on local companies, which might well influence the growth of the economy.

"To cope with all these difficulties, the city should learn to find and grasp opportunities from the challenges," Chen said.

The country's go-west campaign, and the city's bid for the World Expo in 2010 both provide arenas for the city to show its capabilities.

The sound business environment is a great attraction to foreigninvestors, especially when more international investment tends to go to secure regions with relatively low cost, but high profits.

Shanghai has set a lofty target of 4.5 billion US dollars in direct foreign investment by the year's end, Chen said.

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