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China Sets GDP Target at About 6.5%, Omitting Aim to Go Higher

Published 03/04/2018, 07:26 PM
Updated 03/04/2018, 07:30 PM
© Reuters.  China Sets GDP Target at About 6.5%, Omitting Aim to Go Higher
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(Bloomberg) -- China set a 2018 growth target of around 6.5 percent, omitting an intention to hit a faster pace if possible, as leaders intensify their push to ensure financial stability.

The target was released Monday ahead of Premier Li Keqiang’s report to the National People’s Congress gathering in Beijing. While a target of 6.5 percent is equivalent to last year’s goal, the statement didn’t include an objective for output growth to be “higher if possible in practice" as it did in 2017.

President Xi Jinping has been intensifying his push to curb pollution, poverty and debt risk at a time when the world’s second-largest economy is on a long-term growth slowdown. As a result, numerical GDP targets have been de-emphasized in favor of higher-quality expansion since last year.

While growth handily surpassed 2017’s target with a 6.9 percent expansion -- the first acceleration since 2010 -- economists forecast a moderation to 6.5 percent this year amid the ongoing deleveraging drive and trade tensions with the Trump administration.

Other key objectives included:

  • The fiscal budget deficit ratio goal will be 2.6 percent of GDP compared with 3 percent in the past two years
  • Consumer prices will rise about 3 percent, the same as last year’s ceiling
  • The broad M2 money supply growth is expected to remain steady
  • Creation of 11 million new urban jobs, the same as last year
  • Yuan exchange rate to remain stable at an equilibrium level

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