China will continue to pursue stable economic growth this year and has set its GDP growth at 6.5 per cent, according to the annual government work report delivered by premier Li Keqiang yesterday. The country also seeks to reduce its fiscal deficit ratio to 2.6 per cent, he added while presenting the report at the first session of the 13th National People’s Congress in Beijing, China. The session was also graced by president XI Jinping.
“These targets take into consideration the need to building a moderately-prosperous society in all respects…they are fitting, given the fact that China’s economy is transitioning from a phase of rapid growth to a stage of high-quality development,” the premier said.
China’s GDP expanded by 6.9 per cent in 2017, a which is slightly higher than this year’s projected growth rate of 6.5 per cent.
According to the report, the fiscal deficit target is 2.38 trillion yuan ($375.2 billion); and the fiscal deficit to GDP ratio is set to be reduced to 2.6 per cent, compared with 3 per cent last year.
“China will continue to achieve the three major tasks to prevent risks, mainly financial risks, targeted poverty alleviation and pollution control,” the report indicated.
It also showed that the nation’s consumer inflation target, measured by the consumer price index, will be about three per cent this year. Real CPI growth was recorded at 1.6 per cent last year.
The country also aims to create at least 11 million jobs in 2018 and keep the urban registered unemployment rate below 4.5 per cent, according to the report.
The surveyed unemployment rate should be kept below 5.5 per cent, the report adds.
China will also cut 800 billion Yuan in taxes this year, the report said.
The world’s second-largest economy will also implement a long-term mechanism and targeted regulation to stabilise the real estate sector.
Over the past five years, China’s economic growth has reached new heights. China’s has reached 82.7 trillion yuan, registering an average annual growth rate of 7.1 per cent; and its share in the global economy has grown to roughly 15 per cent, up from 11.4 per cent.