Breaking
China Sets GDP Growth Target at 5% for This Year
Summary
- The Chinese government announced that it has set its economic growth target at 5% for this year.
- This year's Consumer Price Index (CPI) target is set at 2%, which is being interpreted as an acknowledgment of slowing demand.
- The fiscal deficit ratio has been expanded to 4% of GDP, which is interpreted as a signal to increase spending.
On the 5th, Reuters reported that the Chinese government has set its economic growth target for this year at around 5%.
This was included in the work report presented at the National People's Congress (NPC) which opened today.
Despite experiencing an economic downturn last year and recently engaging in a trade war with the United States, China has presented the same growth target as the previous two years.
Specifically, the Chinese government set this year's Consumer Price Index (CPI) target at 2%. This is the first time since 2004 that China's CPI target has fallen below 3%, which some interpret as the Chinese government acknowledging a slowdown in demand.
Furthermore, China expanded its fiscal deficit ratio to 4% of GDP, the highest level ever. This is interpreted as a signal to increase spending by raising the fiscal deficit ratio.
Meanwhile, China set its defense budget increase at 7.2% and its unemployment rate target at 5.5% for this year. The target for new employment was set at 12 million people.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
