Opening of China's National People's Congress... Growth Rate Target Set at '6% or Above' (Update)

[Image source=Reuters Yonhap News]

[Asia Economy Beijing=Special Correspondent Cho Young-shin, Reporter Kwon Jae-hee] The Chinese government announced on the 5th (local time) an economic growth target of over 6% for this year. This is seen as reflecting confidence in overcoming COVID-19.

According to China’s state-run Xinhua News Agency, Premier Li Keqiang officially presented a GDP growth target of over 6% for this year during the plenary session of the National People's Congress (NPC) that opened on the same day.

Initially, there was strong speculation that, as in the previous year, no economic growth target would be set due to uncertainties caused by the COVID-19 pandemic. Breaking this expectation, the presentation of the growth forecast is evaluated as reflecting confidence in controlling COVID-19, given that China was the only major country to achieve positive growth last year despite the pandemic and secured vaccines early this year.

Premier Li stated, "The reason for setting this year's economic growth forecast at over 6% is because considering the economic recovery situation, it is a favorable environment to pursue reforms and innovations in various fields as well as qualitative growth."

Premier Li also announced that the fiscal deficit target for economic normalization this year will be adjusted to around 3.2% of the Gross Domestic Product (GDP). Government bonds related to COVID-19 prevention, which were issued last year in the scale of 1 trillion yuan, will not be issued this year.

This year, consumer prices are set to increase by around 3%, the urban unemployment rate is targeted at around 5.5%, and more than 11 million jobs will be created. The economic growth forecast of "over 6%" presented by the Chinese government is regarded as indicating a long-term direction.

Earlier, China’s state-run Global Times reported that "to coordinate policies and provide direction, targets may be presented in forms such as a target range or a minimum of 6%." The International Monetary Fund (IMF) and the World Bank have respectively projected China’s growth rate at 8.1% and 7.9% for this year.

This content was produced with the assistance of AI translation services.