By Wang Zhenghua (China Daily)
Updated: 2008-01-24 16:41

Shanghai plans to grow its economy by about 67 percent over the next five years while achieving an improved economic structure, rising efficiency, lower energy consumption and environment protection, Mayor Han Zheng said Thursday.

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The financial hub, with an estimated GDP growth by 12.6 percent to 1.2 trillion yuan last year, is expected to raise the index to 2 trillion yuan by 2012, which translates into a rise in per capita GDP to more than 100,000 yuan for Shanghai's permanent residents, Han said in his work report.

The city's GDP has maintained a double-digit growth for 16 consecutive years, as it sets economic growth target at 10 percent this year, a little higher than last year's target of 9 percent. The planned target of GDP growth for 2007 was the lowest in 15 years.

Overlooking the city's social and economic development over next five years, the mayor put forward goals to form a basic frame for the "four centers" construction – including international economy, finance, trade and shipping centers – and to realize a "sound and rapid" economic growth on the back of improved development mode.

"One of the primary tasks in the years to 2012 is to quicken the pace to form an industrial structure featured with service industry as the core, and increase its global competitiveness," Han said to the deputies of the city's congress.

The output in the service industry aims to exceed 1.1 trillion yuan by 2012, when it will account for over 80 percent of the GDP in the city's central areas. In 2007, the output in service industry is estimated to rise to 621 billion yuan, more than half of the city's total GDP. The research and development (R&D) expenditures will be raised to 3 percent of the city's total GDP, Han added.

In line with the nation's coordination, Shanghai will promote its partnership with other areas in the Yangtze River Delta on fronts of infrastructure construction, energy saving and environment protection, independent innovation, reform and opening up, financial services, Shanghai Expo preparation and other social developments, Han said.

The city also proposed to make strides in its residents' living level, developments in culture, education and health, as well as energy saving and environment protection initiatives.

Deputies to the congress and CCPCC as well as common residents welcomed the report, saying the city has made remarkable progress in social and economic areas over the years from 2003.

"Mayor Han mentioned not much the progress made in the past in his report but the achievement is really stunning," Mao Zengdian, a professor of Shanghai Jiaotong University, said.

Extraordinary progress was made in the city's efforts to establish itself as an international shipping center and airlines hub. Shanghai has become the world's second largest cargo center with a handling amount of 26.2 million TEU. The city's two airports handled 51.6 million passengers and 2.9 million tons of cargo last year, up 110 percent and 170 percent over 2003 respectively.