China lowers its economic expectations for 2019
- Asian Market
- 2 weeks ago
Chinese Premier Li Keqiang has lowered the country’s economic target for 2019 and increasing fiscal measures in order to balance growth.
The government set a growth target range of 6 to 6.5% for this year, a reduction from the target of “about 6.5%” set for last year, after factoring in a variety of headwinds, including the trade war with the United States,
an already high debt level and financing bottlenecks for private enterprises.
To achieve its aim of doubling the size of the economy in the decade from 2010 to 2020, China must post growth of 6.2% this year, economists at Morgan Stanley estimated.
Although Beijing has tried to play down a lower growth target this year by highlighting the shift to emphasise the quality rather than the quantity of growth, the headline figure remains an anchor of confidence, closely
watched by foreign investors, private entrepreneurs and general public.
A lower target gives the government more leeway if it wants to deal with external uncertainties and remove domestic hurdles to sustained growth.
Source: Smart Trend Team