People’s Republic of China sets 2019 GDP growth objective at 6-6.5%
By David McMullan and Xiang Min of China Consulting Solutions
China set its GDP development objective for this year at between 6 and 6.5% as the nation chases higher-quality progress amid escalating reservations in the global economic scene, according to the annual Government Work Report by Premier Li Keqiang.
China will face a complex situation in 2019 and while starting procedures to steady the economy, China will continue to perform a complete economic ‘opening-up’, stated the report.
In 2019 the target was set at around 6.5% and China's GDP growth ended up as at 6.6 percent year-on-year. China's GDP growth fell to 6.6 percent year-on-year last year, down from 6.8 percent in 2017.
Looking at plunging pressure on growth, China plans to cut almost 2 trillion yuan ($298.3 billion) in taxes and commercial pension payments to strengthen the corporate area, particularly private and small enterprises.
China also set its objective for customer inflation growth at 3% for this year, at the same time it will try to keep growth of the broad measure of money supply mainly at the same level as 2019.
China’s fiscal shortage to GDP ratio will be at 2.8%, 0.2 percentage points more than last year. Local special-purpose arrears will total 2.15 trillion Yuan RMB this year, 800 billion Yuan RMB more than 2018.
Legislators will seek to generate 11 million new jobs in 2019; the unemployment rate in urban areas will be kept at around 5.5%.
China will take measures to effectually control fiscal and financial dangers. To that end, the active fiscal policy should be more effective while the monetary strategy should be neither too tight nor too loose.
The side effects of interest rate hikes and balance sheet contraction in the United States and uncertainties arising from trade disputes among major powers risk driving down global economic and trade growth this year. As a result China will face challenges in its efforts to achieve stable development.