China GDP: Beijing cites ‘policy flexibility’ as reason for dropping specific growth target for 14th five-year plan

Unlike in previous years, the 14th five-year plan for 2021-25 does not specify an economic growth target

China’s top economic planning agency says this gives Beijing more ‘policy flexibility’ to deal with uncertainty

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Unlike in previous years, the 14th five-year plan for 2021-25 does not specify a growth target for the whole period. Photo: Reuters

Published: 7:30pm, 8 Mar 2021Updated: 9:04am, 9 Mar 2021

China has for the first time abandoned an overall economic growth target in its next five-year plan to provide the government flexibility to cope with risks at home and abroad, the country’s top economic planning agency said on Monday.

Unlike in previous years, the 14th five-year plan for 2021-25 does not specify a target for the whole period, but will instead keep annual growth at “ a reasonable range”, with the first year set at above 6 per cent.

Hu Zucai, the deputy director of the National Development and Reform Commission, said this gave Beijing more policy flexibility.

“It leaves room to deal with the uncertainties. It is also good for guiding all parties to focus on improving the quality and efficiency of development,” he said at a press conference on Monday.

It does not mean that China will not need a GDP growth rate any longer

Hu Zucai

“[But] it does not mean that China will not need a GDP growth rate any longer.”

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