Beijing, China -- (SBWIRE) -- 07/24/2009 -- Shanghai Daily has reported that current economic statistics show that Shanghai is well on its way to full recover from the global economic crisis. In the second quarter, the city delivered a much better than expected economic performance, with improved data related to fiscal income, investment and trade. Fiscal income rose a significant 14.9 % over last year with growth returning to positive numbers after posting negative figures for the six straight months. Fixed-asset investment in Shanghai expanded 15.7 % over one year ago. Shanghai's outbound investment more than tripled from a year earlier to US$715 million in the first half, surpassing the total amount in 2008. The trade sector, Shanghai’s hardest hit, had its downward momentum halted last month. By June, total trade volume was US$43.1 billion, down 15.1 % from a year earlier but was an expansion of 13 % from May. While Shanghai's exports fell 19.9 %on an annual basis to US$25.8 billion last month, this was an 8.1 % increase over May. Imports also decreased 6.6 % from a year ago but were likewise a 21.1 % over May of this year. In addition, Shanghai created 67,000 new jobs in the first half of the year, with about 25,000 coming from the 5,540 small and medium enterprises that were established under the supportive government policies.

Xinhua news agency said yesterday in a report releasing some figures ahead of the regular disclosure by the Shanghai Statistics Bureau stated that " a series of key economic data shows that Shanghai's economy has bottomed out and has staged a stable recovery. Weng Jianhua, deputy chief economist at the Shanghai Municipal Development and Reform Commission stated that "the Shanghai government has adopted many unusual ways to stimulate the economy." Among the several government initiatives were lowering the threshold level for starting a company, reducing taxes for small and medium enterprises, providing subsidies for buyers of cars, television sets and air-conditioners to encourage consumption, and launching a series of policies to accelerate construction in a bid to turn the city into a global financial center.

Scott Garner of Lehman Tax & Accounting commented that “the policies of the Shanghai government to combat the effects of the global financial crisis have certainly had a positive impact on the Shanghai economy. It is well know that overall exports in China, including Shanghai, are down by about 26%, and the Shanghai government has relied on domestic spending initiatives to offset this loss in the export sector. All over Shanghai, the government has poured money into public works projects including road and bridge building, construction of new subway lines, and the massive Expo 2009 building site. To combat the fall in real estate prices, the government has created tax incentives for families to purchase homes and created incentives for local banks to make home loans to local residents. To encourage companies to set up in Shanghai, the investment requirements have been relaxed. The city government really has done a remarkable job in keeping the local economy on track, in spite of the economic crisis that has gripped the rest of the world.”

Lehman Tax & Accounting is a prominent Chinese CPA and business advisory firm with offices in Beijing, Shanghai, Shenzhen, Hong Kong, and Mongolia.

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