China GDP: 2022 economic growth target is within reach, ‘but it will come at a cost’
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Beijing is expected to make an all-out effort to achieve its economic growth target of “around 5.5 per cent” this year as it contends with a raft of hurdles and potential impediments to that goal.
“The target can certainly be achieved if Beijing insists, but it will come at a cost,” warned Larry Hu, chief China economist at Macquarie Capital.
“It may force the rise of [China’s] macro leverage ratio,” he said, referring to the measurement of an economy’s overall indebtedness.
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China aims for modest 5.5% GDP growth in 2022, citing economic pressures
But for now, he said, Beijing should wait and see if existing measures prove adequate to offset external challenges.
“The scale of stimulus will depend on if exports remain OK and whether domestic consumption recovers,” he added.