Fujian Governor sets flexible 10pc economic growth target

Fujian is aiming for 10 per cent economic growth this year, a report by its Governor says.

Governor He Guoqiang will tell the Provincial People's Congress when it opens tomorrow that a 10 per cent growth on last year's 333 billion yuan (HK$311 billion) gross domestic product is expected.

But Mr He stresses the figure is only a target, not a mandatory goal.

'I must point out that in a developing socialist economy, this figure is just a guide and it will be subject to change according to the market situation,' his report says.

'This is not a fixed target as in a planned economy.' China last year managed only 7.8 per cent economic growth and most economists believe it will have difficulty maintaining a seven per cent increase this year unless provinces such as Fujian can give the economy a big push.

To stimulate the economy, the Governor says Fujian's Government will need to increase spending and develop domestic markets in the province's hinterland.

He says Fujian will look for new sources of funding to offset the impact from the Asian financial crisis and an increasingly volatile world economy.