Beijing continues 12% growth

By Zhu Zhe (China Daily)
 

Beijing's economy completed its eighth consecutive year of double-digit growth in 2006, thanks to infrastructure investments and consumption.

The Beijing Bureau of Statistics yesterday announced that the city had an output of 772 billion yuan ($99.3 billion) last year, 12 percent more than in 2005. This means it had a per capita gross domestic product (GDP) of $6,210, 8.8 percent more than the previous year.
     
Deputy bureau chief Yu Xiuqin said that according to the Work Bank's classification, Beijing's per capita GDP puts it in the "upper middle-income economies".

She told a press conference that the economy maintained a stable and healthy development last year, and an important driving factor was the work for the 2008 Olympic Games.

"Hosting the Olympics has had, and will continue to have, a profound impact on Beijing's economy."

Though she couldn't give the exact amount that the preparations were costing Beijing, she said that last year 93.5 billion yuan ($12 billion) was spent on infrastructure, 53.2 percent more than in 2005.

In addition to the infrastructure bill, there's a budget of about $2 billion to run the Games, excluding building of the 31 Olympic venues, local media have reported.

Responding to fears that Beijing's, and even China's, economy could see a reverse trend after the Olympics investment frenzy is over, Yu said the Games were just one of the factors behind the fast growth.