Shanghai, the most powerful economic hub of China, achieved Gross Domestic Product (GDP) of US$1.2 trillion in 2007, up 13.3% from a year earlier, marking a double-digit growth for 16 consecutive years, the Shanghai Statistics Bureau announced recently.
The city’s 2007 GDP per capita stood at US$8,594 in the local calculation method, said Pan Jianxin, director of Shanghai Bureau of Statistics. And in accordance with the international standards, the figure would hit US$8,949, said Pan.
The growth rate was 1.3 percentage points higher than in 2006. As for comparison, the city’s consumer price index — a main gauge of inflation, jumped 3.2 percent in 2007, powered by food prices — climbed 9.4 percent last year.
The fast growth in the service sector which accounts for 51.9% of Shanghai’s GDP is the main pushing power for the city’s development last year. And steel production, petrochemical industry and Olympic-related projects will further boost Shanghai’s economy this year.
Fixed asset investments, a main measure of spending on roads, factories and other large investment projects, were also a major contributor, making up 445 billion yuan.
Inflation of 3.2 percent remained well under the national average of 4.8 percent, despite leaping prices in food items, as in much of the country.
The bureau’s consumer inflation calculations do not include real estate, which has been roaring ahead for years at double digits, although many are now predicting a slump in sales amid tighter credit conditions.
“We should tackle inflationary pressure and try to reduce pollution and the consumption of energy,” said Pan Jianxin.