The World Expo is expected to strongly power Shanghai's economy this year by sparking a bigger demand across the city, an academic said Wednesday.

Shanghai's economy is expected to grow 9 to 10 percent this year, with 5 percentage points driven by the "Expo economy," Lu Xiongwen, dean of school of management of Fudan University, said yesterday.

The city government is targeting an economic growth of more than 8 percent this year.

"The Expo will create a bigger economy from traveling, catering, shopping and accommodation in Shanghai this year," Lu said. "The Expo is a golden opportunity for Shanghai to shift its economic structure and cut its reliance on the manufacturing sector."

The services sector now accounts for about half of the city's economy while it contributes about 90 percent in Hong Kong, he said.

The Expo is expected to attract more than 70 million visitors from May to October. A daily average of 400,000 visitors is expected, triggering a huge demand for restaurants, hotels, transport and retail sales.

"It has been proven in history the Expo provides a boom for the host country, and it further enhances the development of the host city and neighboring areas," he said.

(Shanghai Daily February 4, 2010)

Go to Forum >>0 Comments