Xi Jinping Reaffirms 5.5% Growth Target: "Will Take Effective Measures"

Chinese President Xi Jinping [Photo by AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Chinese President Xi Jinping emphasized that policies will be strengthened to achieve this year's 5.5% gross domestic product (GDP) growth target.

According to Bloomberg and others on the 23rd, President Xi made these remarks during a keynote speech at the opening ceremony of the BRICS (Brazil, Russia, India, China, South Africa) Business Forum held via video the previous day. Xi stated, "We will strengthen macro policy adjustments and take more effective measures to achieve social and economic development goals throughout the year and minimize the impact of COVID-19." He did not provide specific implementation plans.

This statement from President Xi is the first from China's top leadership since the Chinese Communist Party Politburo meeting in April. Amid growing views inside and outside China that the 5.5% growth target will be difficult to achieve, it is interpreted as expressing the determination to meet the economic growth target along with the 'zero-COVID' policy.

According to a Bloomberg survey, economists have lowered their growth forecast for China this year by 0.4 percentage points to 4.1%, and expect the second-quarter growth rate to decline compared to the first quarter. Analysts including Maggie Wei of Goldman Sachs forecast, "Except for a more accommodative monetary policy in June, growth recovery is expected to accelerate, but China's 5.5% growth target is still considered difficult."

In his speech, President Xi also called for cooperation among countries, saying, "To prevent a slowdown and disruption in the global economic recovery, macroeconomic policy coordination must be strengthened." He cited global supply chain disruptions, high inflation, and turmoil in global financial markets as major threats. He also criticized Western countries' sanctions against Russia, stating, "Politicizing and weaponizing the world economy and imposing unilateral sanctions by leveraging the dominant position of the global financial system harms other countries."

Regarding China's zero-COVID policy, which has faced external criticism, President Xi self-assessed that China's approach, including lockdowns in major cities, not only protects the lives and health of the people but also stabilizes the foundation for economic and social development as much as possible.

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