China sets growth target of 7.5% for 2014

5 Mar

This week at the annual session of the National People’s Congress, Premier Li Keqiang gave a speech stating that in order to boost market performance and promote economic development, China’s growth rate should be targeted at around 7.5% for this year.

 

Sustainability was an important factor in China’s growth, in terms of the economy as well as the environment. China’s rapid economic growth, industrialisation and increase in income has brought severe environmental consequences, for example the thick smog that covers large cities like Beijing. As a result of this Keqiang has promised to “declare war” on pollution, aiming to address public concerns regarding issues such as poisoned waterways and food safety. Although the authorities and government officials are promising improvement for the environmental situation in China, it is key that policies are actually implemented in order for change to actually be seen.

 

According to the World Bank, China’s GDP growth has actually decreased over time, but showing fluctuations between years – in 2009 it was 9.2%, then increased to 10.4% in 2010, decreased again to 9.3% in 2011 and in 2012 decreased further to 7.8%. This new target of 7.5% is lower than previous years, however the same as last year’s target – suggesting the government wants a stable economic growth for China.

 

In order to maintain this stable economic growth the policies this year are focusing on promoting and implementing reforms; and the country’s growth model aims to be one that does not have an over-reliance on wasteful investment and instead makes private demand the driver for future development.

 

References:

The Telegraph (2014) China targets 7.5pc growth for 2014 [online] Available at: http://www.telegraph.co.uk/finance/china-business/10677173/China-targets-7.5pc-growth-for-2014.html [Accessed 05/03/2014]

 

World Bank (2014) GDP growth (annual %) [online] Available at: http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG [Accessed 05/03/2014]

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