Connect with us

Hi, what are you looking for?

Latest News

China can accept GDP growth of less than 5%, says People’s Daily

BEIJING (Reuters) – China is not wedded to achieving specific GDP growth rates, and a pace of less than 5% for the economy is acceptable as there is no need for the “worship of speed”, state newspaper People’s Daily said on Wednesday.

In March, China’s government set a growth target of “around 5%” for this year, but the world’s second-biggest economy has struggled for momentum largely due to a prolonged property sector crisis and local government debt woes.

Beijing has responded with a series of stimulus measures since late September with only modest success so far. Economists say more policy support is needed to strengthen the recovery, and see U.S. President-elect Donald Trump’s tariff threat as a major growth impediment.

The focus for the Chinese economy is on qualitative improvements and reasonable quantitative growth, the newspaper of the governing Communist Party People’s Daily said in an editorial.

“If we do not break free from the ‘worship of speed’ and continue to expand blindly and launch projects indiscriminately, even if we temporarily boost growth, it will come at the cost of exhausting future growth potential,” the editorial said.

“After hard work, it is acceptable to be a little to the left or a little to the right of 5%,” it added.

The editorial also warned about the economic risks stemming from rising global economic instability and geopolitical uncertainties.

“Certain countries may escalate their containment and suppression efforts against us,” the editorial said in an apparent reference to Trump’s tariff threat and ongoing U.S. efforts to clamp down on Chinese tech and broader goods exports.

Signalling a difficult period ahead, the People’s Daily said that domestic consumption growth “is still weak, and it is increasingly difficult to stabilise investment,” adding that the economic recovery is not yet solid.

Reuters reported last month that government advisers were recommending that Beijing should maintain an economic growth target of around 5.0% for next year.

This post appeared first on investing.com

You May Also Like

Latest News

LONDON (Reuters) – Demand for London’s most expensive homes cooled last month as high earners worried about the possibility of tax increases by Britain’s...

Latest News

Investing.com — The idea of a U.S. Sovereign Wealth Fund has been gaining attention, with both former President Donald Trump and current President Joe...

Latest News

(Reuters) – Bank of Canada Governor Tiff Macklem opened the door to increasing the pace of interest rate cuts, the Financial Times reported on...

Editor's Pick

Venezuela, a country blessed with natural wealth and stunning landscapes, faces a tourism paradox. Despite its abundant resources, the nation struggles to attract international...

Disclaimer: Bullsmarketdominators.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2024 Bullsmarketdominators.com