China has set a 2022 GDP target of “about 5.5%”

On March 1, 2022, a worker welded at an automobile manufacturer’s workshop in Qingzhou, Shandong Province, eastern China.

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Beijing-China has announced a growth target of “about 5.5%” for gross domestic product in 2022 as the annual parliamentary meeting is underway.

Prime Minister Li Keqiang revealed this number in a local time speech on Saturday, but it is not uncommon for official GDP targets to be approximate.

Lee’s other economic goals for employment and inflation were the same as last year.

However, he said this year’s deficit-to-GDP ratio was 2.8%, lower than last year’s 3.2%. Fiscal revenues will increase in 2022, and the government hopes to leverage the profits from state-owned enterprises to enable spending. An increase of more than 2 trillion yuan ($ 316.5 billion) in 2022 compared to 2021.

China’s Ministry of Finance said in another report released Saturday that central government spending on the general public budget is expected to increase 14.3% this year to 13.40 trillion yuan, a plan of 7.1%. is included. Increased defense spending.

According to Lee, China is targeting a city unemployment rate of “5.5% or less” and a consumer price index of “about 3%”. Same numbers as last year.

“A comprehensive analysis of evolving dynamics at home and abroad shows that Japan faces more risks and challenges this year, and we must continue to strive to overcome them.” He said according to the official English version of his remarks. “The harder things get, the more confident you need to take solid steps to achieve results.”

Prime Minister Lee’s closing remarks include a statement that China will “set the stage” for the Chinese Communist Party’s 20th National Convention, and the meeting, scheduled for fall, will be unprecedented for President Xi Jinping. It is supposed to give 3 terms.

Stimulation measures

Economists are broadly expecting a GDP target of around 5% or higher and are seeking more information on stimulating measures for a significantly slowed economy.

The GDP growth target of “about 5.5%” reaches the upper limit of these expectations. In another report on Saturday, the National Economic Planning Agency said, “Achieving this goal will require a lot of hard work.”

Prime Minister Lee said on Saturday that China needs to pursue “cautious and effective macro-policies” as well as “flexible and appropriate” monetary policy in order to reach this year’s economic goals. .. “

The yuan has risen to nearly four years’ highs against the US dollar in recent weeks.

China’s economic growth grew 8.1% for the full year, but settled at 4% year-on-year in the fourth quarter.

The country was the only major economy to grow in 2020, but other parts of the world suffered from the coronavirus pandemic.

However, the slump in consumer spending has not fully recovered from the pandemic, and Beijing’s withdrawal from tech and real estate regulatory crackdowns is dragging growth. China’s strict “Zero Corona” policy with sudden blockades and travel restrictions is also an economy.

In the last two weeks, the heads of government ministries have talked about plans for more financial support, especially for small businesses and consumers.

Regarding consumption, Prime Minister Lee said the government “increases personal income through multiple channels, improves the income distribution system, and enhances people’s purchasing power.”

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With the exception of supporting the purchase of new energy vehicles and more energy-efficient appliances in rural areas, Lee did not give any concrete steps.

Regarding social welfare, Lee said government subsidies for basic health insurance for rural and unemployed urban residents increased by an average of 30 yuan ($ 4.76) per person, and subsidies for basic public health services were He said it would increase by an average of 5 yuan per person. ..

Foreign investment in Taiwan

Lee generally said China will endeavor to fully implement the change in the foreign investment blacklist. The latest version of the list will allow foreign companies to take greater ownership in industries such as passenger car manufacturing.

He said China encourages high-end manufacturing, R & D, modern services, and more foreign investment in the central western and northeastern regions of China.

Regarding Taiwan, Prime Minister Lee said, “Beijing promotes the growth of peaceful and peaceful relations across the Taiwan Strait and the unification of China. I strongly oppose it. “

As is often the case in official statements, Lee does not mention the names of other countries.

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The “Two Sessions” are the annual meetings of the advisory bodies of the Chinese People’s Political Consultative Conference and the National People’s Congress of Beijing.

The meeting, largely symbolic, brings together representatives from across the country, including goals for GDP growth, employment, inflation, deficits and government spending, to approve and announce national economic policies one year ahead.

This year, the two sessions will last for about a week and the proceedings will end on March 11.


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