China is aiming to grow gross domestic product (GDP) by 5 percent this year, according to Premier Li Qiang, whose remarks this morning were cited in multiple media reports.
Li was delivering an address to the National People’s Congress, which is currently meeting in Beijing.
He acknowledged to the 2,900 delegates that “the foundation for China’s sustained economic recovery and growth is not solid enough,” and said that planners would work to rein in local government expenditure, stabilise the property sector and address industrial overcapacity,
The nation’s economy has been slowed over the past year by sluggish manufacturing, property market woes, a lack of consumer confidence, weak consumer demand and geopolitical tensions with the US and its allies.
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Li said the 5 percent target would be achieved by creating millions of new jobs, especially for young people. Special treasury bonds would be issued to fund major projects, the premier said. He added that efforts would be made to keep the urban unemployment rate at 5.5 per cent and inflation at 3 percent.
At the same time, he cautioned that China “should not lose sight of worst-case scenarios and should be well prepared for all risks and challenges.”
The premier’s address had little impact on Chinese stocks, Reuters said, indicating that the market may have been hoping for more extensive stimulus measures.
One analyst told the news agency that “policymakers seem happy with the current trajectory,” and “that’s disappointing for those that hoped for a bigger push.”
