City's economy stable as it equals national average

Shanghai's economy grew 7.7 percent in 2013 from a year earlier, equalling the national average and faster than 2012's 7.5 percent, the city's statistics bureau said yesterday.

Total economic output was 2.16 trillion yuan (US$351 billion) last year, with growth at 7.6 percent in the fourth quarter, following 7.8 percent in the third, 7.6 percent in the second and 7.8 percent in the first.

The service sector expanded 8.8 percent, and it gained 1.8 percentage points to account for 62.2 percent of the overall economy. The manufacturing sector gained 6.1 percent while agriculture fell 2.9 percent, the bureau said.

"Shanghai delivered stable economic performance last year," said Yan Jun, chief economist at the bureau. "It was not easy because the growth was achieved against the backdrop of uncertainties in external markets and the city's self-driven demand for economic restructuring."

The stability was reflected in the desirable economic growth rate, which caught up with the nation's average, relatively low inflation, orderly industrial upgrading and a robust job market, Yan said.

Shanghai was the slowest in terms of economic growth among China's provinces and municipalities in the past few years, but it was among the first to show signs of recovery in the first half of last year.

Mayor Yang Xiong said last week that Shanghai would continue to be a pioneer of reforms in China, with a focus on growth quality rather than speed.

With only 0.06 percent of China's land, 1.8 percent of its population and 1.7 percent of its investment, Shanghai produced more than 4 percent of the nation's overall economic output.

Shanghai's Consumer Price Index, the main gauge of inflation, edged up 2.3 percent year on year in 2013, compared to the national average of 2.6 percent.

The city's disposable income of urban residents jumped 9.1 percent to 43,851 yuan last year. More than 600,000 jobs were created, keeping unemployment at 4.2 percent.

In other fronts, Shanghai's industrial production aexpanded 6.6 percent in 2013, up 3.7 percentage points from a year earlier. It was led by the vehicle, biomedical and refinery sectors.

Retail sales added 8.6 percent, down 0.4 percentage points.

Fixed-asset investment grew 7.5 percent, compared with 3.7 percent in 2012, bolstered by an 18.4 percent surge in property development investment.

Shanghai's trade increased 1.1 percent last year, reversing the drop of 0.2 percent a year earlier, while foreign direct investment gained 10.5 percent to US$16.7 billion, the statistics bureau said.

Shanghai is targeting an economic growth rate of 7.5 percent this year. Mayor Yang said earlier that the city would focus on reform and opening-up in 2014 with all-out efforts on key projects such as the free trade zone.