China’s leaders are expected to target economic growth in a range of 6.5 percent to 7 percent this year, sources familiar with their thinking said, setting a range for the first time because policymakers are uncertain on the economy’s prospects, Reuters reports.
China, the world’s second-largest economy grew 6.9 percent in 2015, which is the weakest result in 25 years. Moreover, some economists believe real growth is even lower!
According to Reuters:
The floor of 6.5 percent reflects the minimum average rate of growth needed over the next five years to meet an existing goal of doubling gross domestic product and per capita income by 2020 from 2010.
The 2016 growth target together with the country’s 13th Five-Year Plan, will be announced at the annual meeting of the National People’s Congress, the country’s parliament, in early March.
The government will not be too nervous about growth this year and will focus more on structural adjustments,
Growth may still slow in the first and second quarter and people are divided over the third and fourth quarter. The full-year growth could slow to 6.5-6.6 percent,
said a government economist.