Shanghai is forecasting its economy will grow by more than 11 per cent this year, the fastest in five years, renewing fears about an overheating mainland economy.
The forecast, given by the city's Development and Reform Commission and reported in local newspapers yesterday, exceeds the full-year target of 9 to 10 per cent announced by Shanghai leaders in February. This will mark the 12th year the mainland's financial capital has registered double-digit growth in gross domestic product, despite the impact of Sars.
Shanghai's economy expanded 10.9 per cent year-on-year last year, official figures showed.
Officials described this year's growth as healthy but some analysts have raised worries about overheating.
'There do appear to be pockets of overheating in the economy. Shanghai would be one of these pockets. But it may not all add up to an overheating economy,' said Paul Schymyck, regional economist for IDEAglobal in Singapore.
Shanghai is a key engine for the mainland's economy, accounting for just over 5 per cent of GDP and nearly a quarter of foreign trade last year.
