Shanghai’s gross domestic product (GDP) is expected to grow 10% this year to just maintain the city’s record of double-digit growth every year since 1992, the Oriental Morning Post
reported, citing a National Development and Reform Commission bulletin. Shanghai’s economy, which is largely based on the finance, real estate and other service sectors, is the most internationalized on the mainland, meaning it is also the most susceptible to fallout from the global credit crunch. Economic output grew 10.3% in the first half of the year, 2.7 percentage points slower than a year earlier and 0.1 percentage points slower than the national average. The service sector as a whole registered growth of just 9.3%, 4.8 percentage points slower than a year earlier. Zhang Jun, a professor at Fudan University, said even reaching 10% growth would be a success given the property and stock markets – traditionally the two key drivers of Shanghai’s GDP - are forecast to make a zero contribution this year. Industrial investment is also predicted to expand just 5% this year, well down on the 10-25% recorded in previous years.