China Reduces GDP Growth Target To 5.5% For 2022

China has set its economic growth target at around 5.5 percent in 2022 after registering an 8.1 percent in 2021, this is a tuned down target considering the geopolitical situation paning out in the world.

The economic committee in Beijing says the target is due to the world economy that is facing mounting pressure due to the pandemic and other uncertainties including geopolitical tensions, it added that the target is expected to significantly boost the global economic recovery.

Additionally, the Chinese government aims to create over 11 million new urban jobs, keep a surveyed urban unemployment rate of no more than 5.5 percent, keep grain output over 650 million metric tonnes and lower the ratio of its deficit to GDP at around 2.8 percent.

The targets are based mainly on the need to maintain stable employment, meet basic living needs, and guard against risks, noting that they are also in keeping with the average growth rates of the last two years and the goals of the 14th Five-Year Plan (2021-2025).

The report also outlined key tasks for this year, including keeping major economic indicators within an appropriate range, steadfastly deepening reform, implementing the innovation-driven development strategy and promoting all-around rural vitalization.

With the 5.5-percent growth target, China will continue to drive global economic growth in 2022, Zhang Yuyan, an economist at the Chinese Academy of Social Sciences and a national political advisor, adding that the country is fully capable of making economic progress while maintaining stability.

The World Bank Group slashed its global growth forecast to 4.1 percent for this year in mid-January amid incessant COVID-19 flare-ups, rising inflation and lingering supply bottlenecks.

As major global organizations are concerned with rising global inflation, China has set its whole year inflation target at around 3 percent for 2022, much lower than the 5.9-percent IMF forecast for emerging markets and developing economies.

Last year, China’s inflation remained tame as the consumer price index climbed 0.9 percent.

Considering that China’s long-term fundamentals remain unchanged, it says the goal for 2022 is feasible, and that it will help boost market confidence in the medium and long term.

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