Local government plans signal robust investment
Provinces and municipalities aim to maintain economic growth of at least 10 per cent by ploughing more money into major projects
The mainland economy may continue to rely on investments this year, going by the development goals laid out by leaders from more than 30 provinces and municipalities.
Most local blueprints pledge to maintain 10 per cent or higher economic growth. The plans were made after national growth slumped to 7.8 per cent last year as demand cooled.
The most aggressive plans are from the local governments in western China. Guizhou, for example, is eyeing a pace of 14 to 16 per cent and fixed-asset investment growth of 30 to 40 per cent. Gansu and Xinjiang hope to expand investments by 30 per cent.
In the more affluent eastern region, targets are only slightly more modest. Flushed with success at boosting its economy to above five trillion yuan (HK$6.23 trillion) for the first time, Jiangsu plans to invest 490 billion yuan in major projects to keep annual growth at 10 per cent.
Only a handful of governments - Beijing, Shanghai and export hubs Guangdong and Zhejiang - set their growth targets in a range of 7.5 to 8 per cent. Local gross domestic product figures usually add up to more than the national output, in part because of a faulty mechanism to collect statistics. Still, the high numbers highlighted in local plans have aroused public attention.
Optimists might see in local governments' determination to stay on the high-growth track a comforting sign that the economy will not be allowed to slow this year. But many experts find the plans worrying.