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January 23, 2017

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Home » Business » Economy

Services help city’s GDP rise above national level

SHANGHAI’S GDP growth exceeded the national level last year for the first time since 2008, powered by the services sector and new industries, Shanghai Statistics Bureau said yesterday.

It rose 6.8 percent year on year in 2016, faster than China’s 6.7 percent growth but slower than the city’s 6.9 percent growth in 2015, official figures showed.

Services accounted for 70.5 percent of Shanghai’s total economic output of 2.75 trillion yuan (US$400 billion).

The sector rose 9.5 percent last year, while manufacturing edged up 1.2 percent and agriculture fell 6.6 percent.

Tang Huihao, the bureau’s chief economist, said the growth was a hard-earned achievement as Shanghai was experiencing the pains of reform.

“The growth was within the reasonable range, meeting the official target of between 6.5 to 7 percent,” Tang said.

“The growth was relatively fast among Chinese cities at a similar development level with Shanghai,” he added.

Industrial production rose 0.8 percent to 3.1 trillion yuan, reversing a decline in 2015.

The output of strategic new manufacturing industries rose 1.5 percent to 830.8 billion yuan, with the proportion of new industries to total industrial output rising 0.7 percentage points to 26.7 percent.

Tang said slow growth in the financial and real estate sectors were major negative factors.

Trade volume at the Shanghai Stock Exchange tumbled 62.4 percent to 49.79 trillion yuan, and the contribution of the financial industry to GDP fell 13 percent from 2015.

Real estate investment rose 6.9 percent, 1.3 percentage points slower than in 2015, with the contribution of real estate industries falling 2.2 percent from 2015. Tang said the slowdown marked a correction, and was good for the city’s economy.

He said that Shanghai’s home prices had begun to decline after the government tightened the rules covering down payments and mortgages to control rising prices. New home prices edged down 0.1 percent month on month in November and further declined 0.2 percent in December, the figures showed.

The Consumer Price Index, a main gauge of inflation, rose 3.2 percent last year, 0.8 percentage points higher than in 2015.

Shanghai’s inflation has been higher than the national level for 36 consecutive months and above 3 percent for 10 consecutive months. Prices in the city were mainly driven by the cost of services, which rose 4.5 percent, Tang said, with food prices rising 2.5 percent.

Retail sales rose 8 percent to 1.09 trillion yuan, of which online sales were up 15.8 percent to 125 billion yuan.

The city’s imports increased 5.2 percent to 1.66 trillion yuan while exports dipped 0.5 percent to 1.21 trillion yuan.


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