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CHINA> Regional
Shanghai may see declining economy in Q1
(Xinhua)
Updated: 2009-01-16 10:32

SHANGHAI -- Shanghai, China's financial hub, is likely to see declining economy in industrial production, exports and revenue in the first quarter of the year, Mayor Han Zheng said Thursday.

In this Oct. 21, 2008 file photo the city skyline is seen from the Shanghai World Financial Center in Shanghai, China, Tuesday Oct. 21, 2008. Shanghai, China's financial hub, is likely to see declining economy in industrial production, exports and revenue in the first quarter of the year, Mayor Han Zheng said Thursday. [Agencies]

Han told the municipal people's congress that the government had set a 9 percent growth goal of the city's production value for this year despite the slowdown.

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"The economic slowdown since November last year was rare and it is the worst in the past 10 years," Han said.

The automobile, steel and petrochemical industries in Shanghai all reported downturn in the past two months.

"Chances are that the industries will reach a two-digit decrease in the first three months," Han said.

Under the impact of the global financial crisis, exports are expected to keep dropping in the first three months, Han said.

Last year, the city's local finance revenue rose by 13.3 percent but saw a drastic fluctuation. The highest monthly growth rate was 43 percent while the lowest was a decrease of 9.5 percent.

"Despite the challenges, Shanghai still faces good opportunities," Han said. "It enjoys advantages in human resources, science and technology, and education. The 2010 Shanghai World Expo will serve as a good opportunity to boost the economy."

 

 

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