Shanghai Economy Steams Ahead, More Double-digit Growth Eyed

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Last updated at: (Beijing Time) Friday, August 16, 2002

Shanghai Economy Steams Ahead, More Double-digit Growth Eyed

China's booming port city of Shanghai saw its economy steam ahead in the first half of 2002, growing 10 percent year-on-year. The eastern metropolis's Gross Domestic Product (GDP) hit 252.3 billion yuan (30 billion dollars) over the six months, beating the city's own growth target of 9.6 percent as well as outpacing national growth of 7.8 percent.

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China's booming port city of Shanghai saw its economy steam ahead in the first half of 2002, growing 10 percent year-on-year, official press reported Friday.

The eastern metropolis's Gross Domestic Product (GDP) hit 252.3 billion yuan (30 billion dollars) over the six months, beating the city's own growth target of 9.6 percent as well as outpacing national growth of 7.8 percent.

"We did have some disadvantages in renewing the city's economic growth in the first quarter, but the city's robust industrial growth and fixed asset investment + particularly in infrastructure and real estate + helped maintain steady advancement," the municipal government's mid-year report said.

City mayor Chen Liangyu forecast continued double-digit growth in the latter half of the year, citing an improving world and domestic economy, the Shanghai Daily reported.

GDP growth, however, fell shy of last year's stellar annual rate of 10.2 percent.

A floundering stock market, increasing labour prices as well as costs incurred from the restructuring of Shanghai's economy hampered even stronger growth, the report said.

Continuing international military conflicts, fluctuating oil prices and the uncertain global economy could pose further challenges, it added.

In response to the increasing cost of doing business in Shanghai - which is forcing many local manufacturers out of the city - the mayor said he was considering developing "favourable industry zones" that would reduce some of these costs.

To spur growth even further, the city also hopes to continue to attract more foreign investment by opening a bidding process on major infrastructure projects.

In addition, the report said, the government would focus on courting multinationals with 400 million dollars in city-wide asset spending in the hope they will relocate.

"Another immediate measure to ensure Shanghai becomes an international financial centre is to convince multinational companies to shift their regional headquarters to the city," the mayor said.

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