China unveiled a growth target of about 5.5 per cent, its lowest in three decades, as Beijing seeks to buttress its economy after a sharp loss of momentum in 2021 and fallout from Russia’s invasion of Ukraine.
The target reflects lower growth expectations in 2022 compared with pre-pandemic rates as Beijing maintains its strict Covid measures, enforces its “common prosperity” policy to reduce inequality and boost the Communist party’s control over business, and contends with a debt-fuelled real estate crisis.
Premier Li Keqiang announced the target at the opening of the National People’s Congress, China’s annual meeting of its rubber stamp parliament in Beijing. It follows year-on-year growth of just 4 per cent in the fourth quarter of 2021 and he stressed that “achieving this goal will require arduous efforts”.