Shanghai, the mainland's leading industrial and commercial metropolis, will face mounting challenges this year as the city attempts to duplicate last year's double-digit economic growth.
That was the assessment of Li Liangyuan, director of the Shanghai Development and Planning Commission, who in his work report delivered yesterday to the municipal people's congress said a number of internal and external developments were expected to weigh heavily on the city economy this year.
Among the factors that could jeopardise Shanghai's performance were uncertain domestic demand, further restructuring in the city's state-owned companies and the development of a more comprehensive social security network, along with a possible downturn in the economies of some developed countries.
Nevertheless, Mr Li called for the city's economy to grow between 9 and 10 per cent, with industrial output to increase by about 9.5 per cent.
That still would compare well with last year's economic growth of 10.8 per cent, with gross domestic product reaching 455.12 billion yuan (about HK$426.5 billion).
The planning chief also estimated that consumer prices would increase by about 3 per cent, following last year's growth of 2.5 per cent, led by rises in housing, materials and fuel costs.
