China down its growth to 7%
This message was Premier Li Keqiang made in China National Assembly session kicks off today. This goal is 7.5% lower than last year – China speed can not be achieved.
The new target is proposed to plan the direction consistent with China’s economic growth slowed and more sustainable, the BBC said. Last year, the country’s GDP rose by 7.4% compared to 7.7% in 2013, due to the real estate market cooled, production slowed and companies as well as government investment fell.
A worker working in the aluminum factory in Zouping (China). Photo: Bloomberg
If you reach 7% in 2015, this will be the second largest economy in the world’s slowest growth for 25 years. Li Keqiang said that the inflation target of 3% this year, 3.5% lower than last year.
In May 1, inflation was down to the bottom of this country 5 years at 0.8% – 1% below forecast. Producer price index (PPI) also increasingly downward, indicating the prolonged weakness in the economy. Li predicted China will face more challenges this year.
“The economy is in the phase shift, the government is committed to reform and anti-corruption. These things are very important in the long term, but will reduce the rise in the short term,” Tao Dong – strategist Asia at Credit Suisse, said on Bloomberg.
Last week, China has cut interest rates 2nd in 3 months, to boost credit and growth in the economy. The Chinese government also pledged to curb local government debt and increased reform of state enterprises. Their goal this year is to create 10 million jobs and keep the unemployment rate in urban areas does not exceed 4.5%.