- Beijing set a moderate growth target of above 6%, which is likely to accomplish even as the economy slows in the second half.
- Although the Chinese economy is projected to meet Beijing’s target this year, recent signals suggest that the government and central bank increase growth aid.
- President Xi Jinping’s Nation visit coincided with the administration’s increased usage of shared prosperity to ensure more people benefit from economic prosperity.
President Xi Jinping said China would strive to hit key economic and social development targets set for this year, even as authorities maintain an aggressive approach to containing the coronavirus, says an article published in SCMP.
Xi stated that China should strive for high-quality growth and better coordinate development and safety programs. Beijing set a moderate growth target for this year of above 6%, which is likely to accomplish even as the economy slows in the second half of the year.
Growing prosperous in rural areas
Local governments should improve rural infrastructure and public service systems, fill public health service deficiencies, and promote a healthy and environmental friendly lifestyle. As per Xi, China must establish both a prosperous city and a flourishing countryside to build a modern socialist country.
While the economy is expected to meet Beijing’s objective this year, the latest signals imply the government and central bank may boost growth assistance, according to Tuuli McCully, Scotiabank’s Asia-Pacific economist in Singapore.
“Consumer spending seems soft, and youth unemployment has increased – these developments will get policymakers’ attention,” she said. “Therefore, I expect additional policy support.”
According to McCully, this will most likely shape targeted fiscal measures to boost employment and further reduce the reserve requirement ratio for banks to help small and medium-sized firms.
The economy is expected to sag in the second half of the year, according to recent statistics. Aside from last year’s higher base, which will slow growth in the coming months, recent virus outbreaks and stricter government controls on industries ranging from real estate to education are further clouding the picture.
Following decades of rapid growth, Xi paid a high-profile visit to an aged care home, highlighting the government’s campaign to guarantee that more people benefit from economic prosperity. The visit coincided with the administration’s increased usage of the slogan “shared prosperity,” indicating a shift in financial policy to ensure that the country’s economic progress benefits the middle class more. Xi also visited a tree plantation in Chengde, 140 miles northeast of Beijing, where he urged officials to do more to protect the environment.
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