Premier Wen Jiabao has cut this year's economic growth target to an eight-year low of 7.5 per cent, a move economists say will enable the government to focus on economic rebalancing and defusing price pressures amid global uncertainty.
'We aim to promote steady and relatively fast economic development, keep prices stable and guard against financial risks by keeping the total money and credit supply at an appropriate level, and taking a cautious and flexible approach,' Wen said in his government work report, delivered to the National People's Congress yesterday on the first day of its annual session in Beijing.
The mainland's economy grew by 9.2 per cent last year and by 10.4 per cent in 2010.
Sun Junwei, chief China economist with HSBC, said stable growth remained Beijing's top priority.
Wen said boosting consumer demand was the year's first priority, with the government looking to wean the economy off its reliance on external demand and capital investment.
'We will improve policies that encourage consumption,' Wen told nearly 3,000 NPC deputies in the Great Hall of the People.
The government set a 4 per cent target for inflation this year, in line with last year's target, and projected money supply growth of 14 per cent, down from last year's 16 per cent. It has forecast a fiscal deficit of 800 billion yuan (HK981 billion), 100 billion yuan less than last year.
