Shanghai's gross domestic product is expected to reach a record 1.2 trillion yuan (US$160 billion) this year, keeping a double-digit growth for 16 straight years, said Mayor Han Zheng yesterday during a forum.

In the first nine months this year, Shanghai's economy swelled 13.4 percent, Han said at the 19th International Business Leaders' Advisory Council for the Mayor of Shanghai.

The city's fixed-assets investment grew 7.4 percent to 311.89 billion yuan through September.

Consumer spending expanded 14.3 percent to 285.32 billion yuan while combined value of imports and exports soared 20.9 percent in the same period.

Han expected the city's value of trade this year will surpass US$500 billion for the first time.

"Shanghai's economy has kept a stable growth. We are confident that Shanghai is on the way to achieve a development balanced with fast growth of productivity, prosperity of people's lives and an ecologically sound environment," said Han.

IBLAC, set up in 1989 as a platform to pool insights from global business leaders, focused this year on building a resource-conserving and environmentally friendly city.

To address this year's theme, Han said Shanghai will continue to develop its service industry, which produces less pollution, to build the city into an economic, financial, trade and shipping hub.

Han estimated the service industry will contribute 52 percent to Shanghai's GDP this year, based on its growth momentum so far.

The IBLAC meeting has become an annual gala for top global executives to gather in Shanghai. Thirty-eight members of the 40 attended this year's meeting, including Stephen Green, chairman of HSBC Holdings Plc, Siemens AG President Peter Loescher, Chairman of Bombardier Inc Laurent Beaudoin, and Chairman of Investor AB Jacob Wallenberg.

"We will fully support the goals for Shanghai's economic development," said Samuel A. DiPiazza Jr, chief executive officer of Pricewaterhouse- Coopers International Ltd, who will chair next year's meeting.

Shanghai signed 2,662 foreign-direct-investment contracts valued at US$9.33 billion through August this year. The number of contracts grew 2.5 percent from a year earlier.