Here’s Why China’s Growth Target Isn’t Changing
Despite a new economic reform plan in China, it will be keeping to it’s growth target of 7.5 percent for next year, according to Reuters. This presents a delicate balance for leadership who need to find a healthy harmony of reform measures and retaining economic health. One thing that will help push growth to its hoped for level is the consumerism of developed countries, fueling the recovery of exports, the commerce ministry’s think tank told Reuters.
“The external environment may show some improvement from this year. Exports could grow 10 percent or slightly faster,” but unfortunately the yuan’s appreciation could cause problems — “It’s very difficult for exporters to cope with the appreciation. Some firms have hit the wall,” said Li Jian — the head of foreign trade research at Chinese Academy of International Trade and Economic Cooperation — to Reuters.
Some had been under the impression that China would be lowering its growth target to somewhere around 7 percent in order to hit harder on the reform front — but this appears not to be the case, with Chinese government hoping to aid in job creation and leave space for further reform should they so choose later in the year.