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Shanghai demographic analysis and economy overview
Shanghai is the largest city in China in terms of
population. Despite the consecutive years of deaths
outnumbering births, total population has grown by
3.8% from 13.3 million in 2001 to 13.8 million in
2007. The increase was due to outsiders obtaining
city registrations mainly by entering a university
in the city or marrying someone in the city. As a
characteristic of a developed city, young people in
Shanghai are not willing to give birth due to family
planning and high living costs. The city also faces
the problem of ageing population.
Below is the chart of Shanghai total population and trends from year 2001 - 2011:
Shanghai is the industrial, financial, and
commercial center of China. Its key industries
include: automotive, electronics,
telecommunications, machinery, textiles, iron and
steel, and petrochemicals. Other thriving
industries, particularly the service industries,
contribute to growth of Shanghai's economy. In
recent years, the financial market system has
gradually matured, providing enhanced services. In
addition, domestic and international trade has
developed rapidly. Nominal GDP of Shanghai city has
more than doubled from 495.1 RMB to 1218.9 RMB
billion in 2007. Currently, Shanghai contributes
about 8.3% to China's gross industrial output value,
10% ports' cargo-throughput, 25% of the total value
of the country's imports and exports and 12.5% of
the total revenue of China, reflecting the vital
role in China’s economy.
Below is the chart of nominal GDP and trends of Shanghai city from year 2001 - 2011:
Shanghai’s
nominal GDP per capita has risen from 37, 305 RMB in 2001 to 88, 398 RMB in
2007. The trend is expected to carry on as Shanghai plans to enhance its
economy by approximately 67% over the next five years while achieving an
improved economic structure, rising level of efficiency and taking
environment protection into consideration.
Below is the chart of Shanghai nominal GDP per capita and trends from year 2001 - 2011:
Shanghai’s
government finance revenue has increased by 3.3 times from 62 RMB billion in
2001 to 207 RMB billion in 2007. In 2005, Shanghai's fiscal revenue increase
in the tertiary industry is more than that of the secondary industry by at
least 10%; this is largely attributed to the rapid development of the
service sector. Corporate and personal income taxes recorded a larger growth
rate relative to value-added and business taxes. The service sector will
maintain its growth rate and at the same time, contributing to the
increasing fiscal revenue.
Below is the chart of Shanghai government finance revenue and trends from year 2001 - 2011:
Total investments
in Shanghai has doubled from 199 RMB billion in 2001 to 446 RMB billion in
2007. Emerging sectors to in Shanghai include: IT, telecommunications
services, transportation infrastructure, distribution services,
environmental technologies, construction materials etc. Shanghai is able to
receive preferential treatment from the central government, particularly as
an incubator for reforms and pilot projects. This would serve as incentives
to attract investors to the city. However, one major concern that plagues
investors would be the rising operating costs that they would need to face.
This has lead to companies shifting production out of Shanghai. This trend
would be expected in the future as investors look for similar alternative
investment landscapes which would be prevalent in the future, as many parts
of China further developed their respective economies. Comparing between
other cities with lower costs, the rising costs would be a major issue that
lead will to a decrease in investments in fixed assets, as Shanghai faces
competition from other emerging cities.
Below is the chart of Shanghai total investments in fixed assets and trends from year 2001 - 2011:
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