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Beijing set to hit growth target

By Xie Chuanjiao and Cui Xiaohuo (China Daily)
Updated: 2009-01-13 07:34

Despite the economic slowdown, Beijing set its annual growth rate to 9 percent this year, its mayor said Monday.

Last year's GDP is expected to surpass 1 trillion yuan ($146 billion), Guo Jinlong said at the city's annual legislative meeting.

Per capita GDP for last year is expected to exceed $8,000.

"Actively responding to the crisis and challenges is a formidable task, and maintaining steady yet rapid economic development in the capital is the primary task for the government this year," he said.

The global financial crisis is already making its influence felt, he said.

For instance, the real estate market is sluggish, growth in industrial production and exports has slowed, some firms are experiencing difficulties, and economic growth is slowing significantly.

"As the capital's economy is primarily service-oriented, the global financial crisis has had a delayed effect, and there are many uncertainties for economic development this year," the mayor said.

Legislators said the Beijing Olympics was a major factor in boosting Beijing's economy last year.

"The Olympics helped Beijing raise the bar in all respects. Beijing has learned to develop its regional economy efficiently," Liu Jingmin, the city's vice-mayor told delegates at a group discussion Monday.

"The Games helped Beijing spend a lot of its investment ahead of schedule. In many sectors, the city leads the entire nation," Sun Weilin, a delegate to the meeting, who is also head of the Beijing Construction and Engineering Group, said.

Sun said Beijing's construction has led the nation a long way after it built the Olympic venues.

"Beijing will maintain steady and rapid development of the capital's economy and social peace and stability, build a culturally-enriched, technology-empowered and environmentally friendly city," Guo said.

To meet the targets, the first step is to promote rapid growth in investment, he said.

This year, the municipal government's fixed asset investment will be 30.5 billion yuan, with the focus on infrastructure, mainly rail transit lines, and the promotion of industrial development.

"We will encourage the consumption of standard or larger housing, accelerate development of a secondhand home market and a house-leasing market and propel healthy development of the real estate industry," Guo said.

The city will also introduce diversified policies to channel funding for companies, especially small and medium-sized ones to help them survive the financial turmoil.