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China sets growth target at 7.5% for third year running

Published on Mar 5, 2014 9:29 AM
A security guard stands next to an advertising board in front of a residential compound under construction in Wuhan, Hubei province on Jan 21, 2014. -- FILE PHOTO: REUTERS 

China has set its growth target at 7.5 per cent this year for the third year running, leaving room for slower but quality growth as the country embarks on one of its most ambitious reforms in three decades.

The figure will be officially announced by Premier Li Keqiang later on Wednesday morning in his government work report when he opens the annual session of China's national Parliament.

The GDP target is viewed as a key signal on how serious the leadership is about carrying out reform as China overhauls its economy from a growth-at-all-costs model that has devastated the environment to a quality-driven one, as well as an indicator of how fiscal and monetary policy may fare in the coming year.

This marks the third consecutive year for the world's second-largest economy to target growth at 7.5 per cent. In 2012, the government cut the forecast rate for the first time in eight years from a longstanding annual goal of 8 per cent.

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