The Chinese authorities will set a 5% target for GDP growth in 2022

Bloomberg agency has conducted a survey among highly respected economists about the prospects of the Chinese economy. Most of them believe that in March the Chinese government will announce a target growth rate of 2022 and it could achieve 5%. Before the pandemic crisis, the target for annual GDP growth was generally close to 7 per cent. A few days ago, the Chinese Academy of Social Sciences recommended the Chinese government set a 5 % economic growth target for next year. Experts believe that China’s economy has the potential to grow at a higher rate next year. To do this, however, the country’s Central Bank must soften its Monetary policy. Changes in the current fiscal policy are also needed. In the third quarter, the Chinese economy grew by 4.9 per cent at an annual rate, which is well below the rate of growth in the second quarter. Between April and June, the GDP of China grew by 7.9%. Morgan Stanley’s Analysts reminded that in 2022 the PRC would host an important political event — the Communist Party’s congress. The incumbent Head of Government is expected to step down.

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Arseny Kudrin

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