China tar­gets eco­nomic growth of 6.5-7pc in 2016

The Pak Banker - - FRONT PAGE -

China's eco­nomic growth rate tar­get has been set at 6.5 to 7 per­cent in 2016, with an av­er­age an­nual growth rate of at least 6.5 per­cent through 2020, Premier Li Ke­qiang said Satur­day when pre­sent­ing the govern­ment work re­port to the an­nual par­lia­men­tary ses­sion. Last year's tar­get was "around 7 per­cent," and China reg­is­tered 6.9 per­cent growth, the slow­est ex­pan­sion in a quar­ter of a cen­tury.

This year's tar­get is aligned with China's goal of com­plet­ing the build­ing of a mod­er­ately pros­per­ous so­ci­ety in all re­spects, and takes into con­sid­er­a­tion the need to ad­vance struc­tural re­form, Li said at the fourth ses­sion of the 12th Na­tional Peo­ple's Congress (NPC). "It will also help guide mar­ket ex­pec­ta­tions and keep them sta­ble. The aim of main­tain­ing sta­ble growth is pri­mar­ily to en­sure em­ploy­ment and pro­mote the peo­ple's well­be­ing, and a growth rate of be­tween 6.5 per­cent and 7 per­cent will al­low for rel­a­tively full em­ploy­ment," Li said. The coun­try's ur­ban job cre­ation tar­get re­mains at least 10 mil­lion. Last year's 6.9-per­cent growth added 13.12 mil­lion new ur­ban jobs.

"...China's eco­nomic out­put had ex­ceeded 60 tril­lion yuan. Ev­ery per­cent­age point of GDP growth to­day is equiv­a­lent to 1.5 per­cent­age points of growth five years ago or 2.5 per­cent­age points of growth ten years ago. The larger the econ­omy grows, the greater the dif­fi­culty of achiev­ing growth," Li said. A brief overview of China's 13th Five-Year Plan was also in­cluded in Li's re­port. The coun­try ex­pects an av­er­age an­nual growth rate of at least 6.5 per­cent from 2016 through 2020, when China will have GDP of 90 tril­lion yuan ($13.8 tril­lion). The adop­tion of a range in the eco­nomic tar­get is China's first since 1995, and of­fers more flex­i­bil­ity for the govern­ment. In a re­port ahead of the NPC ses­sion, econ­o­mists with Bank of Amer­ica Mer­rill Lynch said a range would be "a laud­able move as it would leave some room for struc­tural re­forms with­out stretch­ing on short-term growth ob­jec­tives."

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