Shanghai's growth slows again
By Joy Wang |
May 16, 2012, Wednesday
|
Print Edition
Print Edition
SHANGHAI'S economic growth weakened further in April as exports, imports and fixed-asset investment all declined.
The weak performance also nibbled away at industrial production growth in the first four months, the Shanghai Statistics Bureau said yesterday.
With less inflationary pressure around the country, Shanghai, in particular, needs stimulus to boost its growth, analysts said.
Exports fell 5.6 percent from a year earlier to US$16.3 billion last month, and imports were down 1.6 percent to US$18.2 billion. It was the first time since October 2009 that Shanghai had reported declines in both exports and imports, the bureau said.
Fixed-asset investment in the first four months lost 0.4 percent to 122.3 billion yuan (US$19.4 billion), led by a cut of 25.8 percent in urban infrastructure construction investment.
Industrial production also slumped 0.2 percent to 1.01 trillion yuan during the four months, compared with 0.7 percent expansion in the first quarter.
"Shanghai's economic growth is weakening faster than feared," said Li Maoyu, a Changjiang Securities Co analyst.
"Although a slower rate is required for Shanghai's economic restructuring, the city still needs steady growth to create jobs and keep itself promising for professionals."
Shanghai aims to grow into a global financial, shipping and trading center by 2020.
However, that goal has been overshadowed by fast moderation in the city's economy. Its gross domestic product grew just 7 percent year on year in the first quarter, the slowest in 18 months and the weakest among Chinese provinces and municipalities.
Yan Jun, the bureau's chief economist, said earlier that the city's slowdown was the result of external difficulties but still tolerable. He expected the growth rate to bottom out in the following quarters.
But David Xue, an analyst at CITIC Securities Co, said: "Shanghai needs to beef up efforts to sustain growth momentum. It should start from allowing more flexibility in the city's financial sector to enrich market liquidity."
Shanghai's Consumer Price Index, the main gauge of inflation, expanded 3.6 percent in April, less than March's 3.8 percent but higher than the national average of 3.4 percent.
On Saturday, the central bank announced a lowering of the reserve requirement ratio by 0.5 percentage points to free around 420 billion yuan for lending.
The weak performance also nibbled away at industrial production growth in the first four months, the Shanghai Statistics Bureau said yesterday.
With less inflationary pressure around the country, Shanghai, in particular, needs stimulus to boost its growth, analysts said.
Exports fell 5.6 percent from a year earlier to US$16.3 billion last month, and imports were down 1.6 percent to US$18.2 billion. It was the first time since October 2009 that Shanghai had reported declines in both exports and imports, the bureau said.
Fixed-asset investment in the first four months lost 0.4 percent to 122.3 billion yuan (US$19.4 billion), led by a cut of 25.8 percent in urban infrastructure construction investment.
Industrial production also slumped 0.2 percent to 1.01 trillion yuan during the four months, compared with 0.7 percent expansion in the first quarter.
"Shanghai's economic growth is weakening faster than feared," said Li Maoyu, a Changjiang Securities Co analyst.
"Although a slower rate is required for Shanghai's economic restructuring, the city still needs steady growth to create jobs and keep itself promising for professionals."
Shanghai aims to grow into a global financial, shipping and trading center by 2020.
However, that goal has been overshadowed by fast moderation in the city's economy. Its gross domestic product grew just 7 percent year on year in the first quarter, the slowest in 18 months and the weakest among Chinese provinces and municipalities.
Yan Jun, the bureau's chief economist, said earlier that the city's slowdown was the result of external difficulties but still tolerable. He expected the growth rate to bottom out in the following quarters.
But David Xue, an analyst at CITIC Securities Co, said: "Shanghai needs to beef up efforts to sustain growth momentum. It should start from allowing more flexibility in the city's financial sector to enrich market liquidity."
Shanghai's Consumer Price Index, the main gauge of inflation, expanded 3.6 percent in April, less than March's 3.8 percent but higher than the national average of 3.4 percent.
On Saturday, the central bank announced a lowering of the reserve requirement ratio by 0.5 percentage points to free around 420 billion yuan for lending.
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