Shanghai Drops Growth Targets But Expert Says GDP 'Will Never Be Overlooked'

In his speech before the annual session of the Shanghai People's Congress, Mayor Yang Xiong omitted the details of gross domestic product (GDP) growth targets for the first time.

Yang delivered the work report of the city's government to a gathering that included Han Zheng, Secretary of the Communist Party of China's Shanghai Municipal Committee.

The GDP decision was made after national lawmakers advised against their future use in 2013, and experts commented on the matter after Sunday's meeting, stating that the omission represents a progressive official body that is no longer interested in "chasing numbers."

Beijing-based Zhang Liqun, a research fellow at the state-funded Development Research Center of the State Council, commented in relation to the Shanghai government's historic decision:

"It shows China's coastal region has made significant headway in moving toward a more efficient model that relies less on investment and exports and more on domestic consumption."

Zhang further explained that GDP is not actually a useful measurement for the Shanghai government to rely upon, as the figures "fail to reflect the city's actual economic performance," including factors such as "fiscal income, employment level, and risks faced by banks."

A director with the China Center for International Economic Exchanges (CCIEE) reinforced the research fellow's viewpoint, saying that the global standard involves measuring inflation and employment.

Shanghai is the first city to shelve its targets at this stage, and analysts stated that it is difficult to know if it will eventually become a Chinese pioneer of the practice.  

However, GDP is by no means anachronistic, as CCIEE director Xu Hongcai maintained: "GDP growth will never be overlooked, because it provides an indication of economic performance."

Zhejiang Province and Beijing are among the numerous provinces and cities that still presented growth targets for the forthcoming year.