SHANGHAI, Feb. 3 (Xinhua) -- Shanghai has set a GDP growth target of around 5 percent for 2026, mayor Gong Zheng said on Tuesday while delivering a government work report.

An aerial drone photo shows visitors enjoying the cityscape at The Stage, a new observation deck atop White Magnolia Plaza in Shanghai, east China, April 14, 2025. (File photo: Xinhua)

The target follows better-than-expected economic expansion in 2025. Shanghai's GDP grew 5.4 percent year on year to 5.67 trillion yuan (about 814.6 billion U.S. dollars) last year, according to the report.

Lu Ming, director of the Shanghai Institute for National Economy at Shanghai Jiao Tong University, said that setting the growth target at around 5 percent reflects Shanghai's strategic resolve and pragmatic approach. He noted that this target supports sustained growth while addressing a new stage of development and adapting to evolving external conditions.

Domestic demand will play a more prominent role in Shanghai's economic growth in 2026, the report said. The megacity plans to vigorously boost consumption by developing the debut economy, nighttime economy, live-streaming economy, and silver economy, while promoting deeper integration of culture, tourism, commerce, sports and exhibitions.

The report added that Shanghai will also enhance facilitation for inbound tourism, departure tax refunds and cross-border payments to further boost inbound consumption.

Shanghai recorded a remarkable 9.36 million inbound visits last year, up nearly 40 percent year on year and setting a new record for annual inbound tourism.

In addition, the major Chinese financial hub will do its utmost to stabilize foreign trade and foreign investment, encouraging more foreign investment in sectors such as advanced manufacturing, modern services, high-tech, and energy conservation and environmental protection industries.

In 2025, Shanghai's total imports and exports reached 4.51 trillion yuan, up 5.6 percent year on year, with exports rising 10.8 percent. Actual utilization of foreign investment totaled 16.06 billion U.S. dollars, while more multinational companies established regional headquarters or R&D centers in the city.

Technological innovation and emerging industries remain key drivers of Shanghai's high-quality development. The report said the metropolis will further strengthen its role as an international science and technology innovation center, promote deeper integration of technological and industrial innovation, and foster new quality productive forces.

In 2025, R&D expenditure accounted for about 4.5 percent of Shanghai's GDP, according to official data. The combined scale of Shanghai's integrated circuit, biomedicine and AI industries exceeded 2 trillion yuan last year.