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China sets modest GDP growth target as economy improves

Other News Materials 5 March 2021 07:32 (UTC +04:00)
China sets modest GDP growth target as economy improves

China on Friday set a modest annual economic growth target, at above 6%, and pledged to create more jobs in cities than last year, as the world’s second-biggest economy emerged from a year disrupted by the effects of COVID-19, Trend reports citing Reuters.

In 2020, China dropped a gross domestic product growth target from the premier’s work report for the first time since 2002 after the pandemic devastated its economy.

“As a general target, China’s growth rate has been set at over 6% for this year,” Premier Li Keqiang said in his 2021 work report. “In setting this target, we have taken into account the recovery of economic activity.”

China’s GDP expanded 2.3% last year, the only major economy to see growth.

But the 2021 target was significantly below the consensus of analysts, who expect growth could beat 8% this year. Chinese shares fell.

“If sequential growth averages zero from Q1 to Q4 this year, we will get around 6.1% annual growth this year,” Nomura said in a note.

“Beijing does not want to set a growth target too close to 8.0% as it does not want to slash the growth target next year.”

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