Guangzhou's per capita gross domestic product (GDP) is expected to exceed US$10,000 in 2006, according to local authorities.

With seven million registered residents, Guangzhou, capital of China's richest province, Guangdong, will see its GDP reach 623.6 billion yuan (about US$80 billion) in 2006, 14.4 percent higher than 2005, said city mayor Zhang Guangning in a draft report on the city government's performance and work.

"The breakthrough in GDP per capita indicates that Guangzhou has become China's first developed city by World Bank standards," said Peng Peng, a researcher with the Guangzhou Academy of Social Sciences.

Guangzhou's per capita GDP exceeded US$8,500 in 2005, with the Engel coefficient -- measuring the proportion of income that is spent on food -- down to 38 percent.

Statistics show that the economic growth is mainly driven by the automobile, petrochemical, electronics and communications equipment industries.

However, the city has decided to hold steady at 12 percent in growth as the national focus shifts from a headlong hurtle towards GDP expansion to a more measured approach of achieving balanced, sustainable development, Zhang said.

"The move matches the provincial target to lower the GDP growth rate to nine percent amid efforts to optimize economic structures and deepen reforms. By slowing growth, we aim to achieve a balance between economic development, environmental protection and the use of resources," said Huang Huahua, governor of Guangdong.

(Xinhua News Agency January 4, 2007)