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China GDP: Beijing sets moderate 2021 economic growth target as focus shifts to debt reduction
- Premier Li Keqiang announced a gross domestic product (GDP) growth rate target of ‘above 6 per cent’ for this year during Friday’s National People’s Congregss
- Most analysts project China’s economy will grow by more than 8 per cent this year as it recovers from the impact of the coronavirus
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China’s decision to revive its decades-long tradition of setting an economic growth target for 2021 is seen as a vote of confidence in its continued recovery from the effects of the coronavirus, but the low bar suggests focus has started to pivot back towards deleveraging to reduce debt and financial risks.
Premier Li Keqiang on Friday announced a gross domestic product (GDP) growth rate target of “above 6 per cent” for this year as he laid out China’s economic and social plans in the government work report to the National People’s Congress in Beijing.
The target was dropped last year as the country dealt with the fallout from the coronavirus, with a widespread debate among policy advisers whether the country should scrap the target altogether.
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“A target of over 6 per cent will enable all of us to devote full energy to promoting reform, innovation, and high-quality development,” Li told the country’s legislature as he delivered the annual government work report.
2021 offers the best opportunity since 2008 [after the global financial crisis], in the sense that the government has absolutely no pressure to maintain growth
But with virtually all analysts projecting the Chinese economy will grow by more than 8 per cent this year, in part due to the low comparison base from a virus-hit 2020, Beijing is widely expected to easily exceed the target.
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