Shanghai reduced GDP growth rate target for 2018

Beijing. January 25. Silkroadnews - Shanghai has lowered its GDP growth target for 2018 to 6.5%, China Daily reported.
“Shanghai has lowered its gross domestic product growth target for the next five years while increasing investment in research and key new industries to achieve stable, healthy and sustainable development,” the report said.
The city set a target GDP growth rate for the next 5 years at approximately 6.5%, the Mayor of Shanghai Ying Yong said in the report on the work of the municipal government during the current annual session of the Shanghai People’s Congress.
This target is lower than the average annual GDP growth of 7.1% the city achieved in the past five years. Among the most significant achievements during this period were the successes in the in-depth reforms in the free trade zone, growth of innovations and improvements of the quality of economic development. In 2017, Shanghai became the first Chinese city to top GDP of 3 trillion yuan ($469 billion).
With this Ying said that in the next five years Shanghai will increase its investment in research and development to more than 4% of its GDP as a part of efforts to create a technology and innovation center.
At present, a number of scientific laboratories and facilities are being built in the city to develop free-electron lasers, underwater monitoring networks, etc.
In addition, continuous growth is expected in such industries as new energy vehicles, intellectual production and production of high-quality medical equipment.
A 6.5% growth rate is not a slowdown and will continue to encourage investor confidence and consumers’ activity.
The increase in investment in research and development, compared with the current 3.8% to more than 4% of GDP, is also critical to grow the city’s competitiveness.
In the developed countries, such as the U.S., Germany and Japan, investments in research and development usually range from 2% to 3% of GDP.