China Sets 5% GDP Growth Target, Seeking a Revival
China's government said it would raise fiscal spending by 5.6% this year, less than last year's increase, The Wall Street Journal reported. The government also said it would increase tax cuts and transfer payments to local governments by 1.3 trillion yuan ($193 billion).
China has set 5% for its economic growth goal for this year. This is the lowest level in decades. The government also plans to increase military spending and social spending, which are aimed at reviving the economy after the last year's pandemic lockdowns.
This announcement was made at the beginning of a new legislative session. China's top economic official, Premier Li Keqiang, said to the delegates Sunday at the opening of the National People's Congress that 'we should give priority the recovery and expansion consumption.'
According to the Associated Press, China's gross domestic products rose 3% last year, which was the second slowest increase since 1970s. This number could have been hampered by the three years of zero-Covid policies, which have since been ended. China forecasted last year's growth at 5.5%.
According to the New York Times, Li stated that 'uncertainties in the outside environment are increasing'. The New York Times reported that Li stated that the foundation for stable growth must be strengthened at home. Insufficient demand is still a major problem and expectations of private investors are uncertain.
The Wall Street Journal reported that approximately 3,000 delegates will be attending the meetings. They will last all week and are expected help President Xi Jinping consolidate his power over security and finance. The NPC is expected approve the appointment of a slate Xi loyalists including a new premier.
According to Li, China's government will increase fiscal spending by 5.6% in 2018, less than the previous year's increase. Fiscal revenue is forecast to rise by 6.7% by 2023.