China sets economic growth target at around 5.5% for 2022

10 Mar '22

2 min read

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China has set its economic growth target at around 5.5 per cent for this calendar year as lawmakers and political advisors gathered in Beijing to map out development priorities. This year, it aims to create over 11 million urban jobs, keep a surveyed urban unemployment rate of no more than 5.5 per cent, and lower the ratio of its deficit to gross domestic product (GDP) at around 2.8 per cent.

"It represents a medium-high rate of growth given our large economic aggregate, and demonstrates our ability to move proactively," Premier Li Keqiang said. The country’s national legislature began its annual session last week.

The Chinese economy saw a strong rebound with 8.1-percent growth in 2021 and became the only major economy to record growth in 2020.

The targets are based mainly on the need to maintain stable employment, meet basic living needs and guard against risks, Li said, noting that they are also in keeping with the average growth rates of the last two years and the goals of the 14th Five-Year Plan (2021-2025), an official news agency reported.

Last year, China's inflation remained tame as the consumer price index climbed 0.9 per cent.

To meet the annual targets, the country will keep its proactive fiscal policy more effective and step up implementation of prudent monetary policy, Li said.

China will this year extend policies that support manufacturing, micro and small enterprises and self-employed individuals, with tax refunds and cuts expected to total 2.5 trillion yuan (about $395 billion).

Fibre2Fashion News Desk (DS)

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