China has set a growth target of 6.5-7 percent for this year, National Development and Reform Commission Chairman Xu Shaoshi said Wednesday.
This year, authorities have set a range for growth instead of a target figure.
In 2015, the government targeted about 7 percent growth and the economy achieved 6.9 percent expansion, which was the least since 1990.
Xu said 6.9 percent is a reasonable growth rate in this complex global and domestic environment. In the first quarter, downward pressure would be relatively large, the top official added.
The International Monetary Fund forecast only 6 percent growth for this year as the economy adjusts to the ‘new normal’ of slower growth and weaker currency.
Xu also said the government plans to take measures to curb industrial overcapacity and disposal of zombie companies. Further, the official said reduction of overcapacity and the resultant unemployment would not allowed to affect social stability.
China has lot of policy tools to adopt that can help the economy to maintain a reasonable growth.
The Chinese central bank lowered interest rates six times last year amid the slowdown in growth and the stock market rout. The bank also lowered the reserve requirement ratio several times to underpin lending.
China yesterday lowered the minimum mortgage down payment requirement for first-time as well as second-time home buyers, in yet another effort to boost the property market.
The material has been provided by InstaForex Company – www.instaforex.com