Shanghai's economy grew 12 per cent last year, extending the city's string of double-digit increases into a 15th consecutive year despite the government's cooling attempts. The city's Bureau of Statistics announced yesterday that Shanghai's gross domestic product grew 12 per cent to a record 1.0 trillion yuan last year, much higher than the 10 per cent growth target set at the beginning of last year in response to central government demands to cool red-hot investment. The result was also up from the 11.1 per cent GDP growth reported for Shanghai in 2005. The bureau's report said the economy continued to grow in a 'stable, co-ordinated and healthy' way with improvements in its structure and efficiency. Shanghai's investment in fixed assets and property development was slowing as macroeconomic control measures gradually took effect, the report said. Investment in fixed assets rose 10.8 per cent year on year to 392.5 billion yuan last year, down 4 percentage points from the growth rate in 2005. Investment in property development grew 2.3 per cent last year, down 3.8 percentage points, and its proportion of fixed-asset investment fell 2.7 percentage points to 32.5 per cent. Analysts said the GDP growth rate was still reasonable because it was supported by robust industrial output and a rising service sector, although the contribution from property was sliding. 'The government is now giving more consideration to the quality of the economy. It is shifting focus to high value-added and technology-intensive industries. The service sector, such as the financial and logistics industries, is also expanding rapidly with favourable policies,' said Zhang Qi , a Shanghai-based economic analyst with Haitong Securities. The added value of industrial output rose 12.8 per cent last year while the service sector's added value increased 11.5 per cent.