Investment in Olympic Games brings generous repayment to Beijing

Direct investment of 141.731 bln yuan in Beijing Olympic Games will bring about extra annual increase of 8.783 bln yuan in Beijing's GDP from 2002 to 2007, according to a forecast released by the State Information Center March 23.

According to the report, the direct investment's pulling effect is most obvious in 2005 and 2006, contributing GDP increase of 3.01 and 2.86 percent respectively.

Industries including construction, electronics & electronic equipment production, service and mechanical equipment will benefit most from such investment.

From 2002 to 2007, the direct investment in Olympic Games will produce extra increase of 367 mln, 1.361 bln, 2.942 bln, 4.439 bln, 4.731 bln and 4.524 bln yuan respectively for the construction industry of Beijing.

At the same time the direct investment gives rise to mechanical equipment production, it will boom service sector too. The annual extra increase in service industry of Beijing will be 254 mln, 940 mln, 2.031 bln 2.767 bln and 2.949 bln respectively from 2002 to 2007.

Driven by the investment, Beijing's economic structure will be further optimized and adjusted, and rational and balanced development of industries will be attained. While the first industry maintains sable growth, the second industry will attain strong momentum, and the high-tech and modern manufacturing industries will further develop too.

Pushed by construction of Olympic venues and basic city infrastructures, fast-paced development will be attained in the city's basic infrastructures, which lays a solid foundation for rapid economic growth in the future. It will boost growth of industries including building materials, real estate, architecture design and decoration.

High-tech industries and modern manufacturing industries such as automobile, mechanical and electronic products will embrace golden opportunity. The proportion of these industries' added value in China's GDP will soar, and they will become pillar industries in economy of Beijing.

The growth rate and size of the third industry as well as its proportion in China's GDP will increase rapidly. A modern service system with real estate, finance and insurance, tourism and conference, commerce, logistics, culture and sports as leading industries will take shape after the Beijing Olympic Games. The service system will boost development of new service sectors.

Influenced by the investment, the industrial layout of Beijing will be further strengthened, and the industrial structure that fits the capital's economic growth will become stable gradually.

By People's Daily Online