China GDP: Beijing abandons 2020 economic growth target, Premier Li Keqiang confirms at NPC
- China will not set an economic growth target for 2020, Premier Li Keqiang confirmed at the National People’s Congress (NPC) on Friday in Beijing
- China has set a target of creating 9 million new urban jobs, while the target for consumer price index (CPI) growth is around 3.5 per cent
China will not set an economic growth target in 2020, Premier Li Keqiang confirmed at the National People’s Congress on Friday in Beijing
“We have not set the specific [gross domestic product] target mainly due to the global pandemic and big uncertainties in the economy and trade,” read the work report, adding that China was facing an “unpredictable” time.
China's government has, though, set a target of creating 9 million new urban jobs, compared to 11 million last year, and a surveyed urban unemployment rate of around 6 per cent, compared to 5.5 per cent last year. In 2019, China created 13.52 million new urban jobs.
We need to blaze a new path that enables us to respond effectively to shocks and sustain a positive growth cycle
The target for consumer price index (CPI) growth for the year is around 3.5 per cent, compared to 3 per cent last year.
Beijing has set a local special bond quota at 3.75 trillion yuan (US$527 billion), compared to 2.15 trillion yuan last year. It will issue 1 trillion yuan in special Treasury bonds, targeting a fiscal deficit ratio of 3.6 per cent, compared to 2.8 per cent last year. As the special Treasury bonds are not included in central government’s budget, they do not contribute to raising the deficit-to-gross domestic product (GDP) ratio.
“We must be clear that efforts to stabilise employment, ensure living standards, eliminate poverty, and prevent and defuse risks must be underpinned by economic growth; so ensuring stable economic performance is of crucial significance,” the work report continued.