Macroeconomic indicators - China targeting 7pct GDP growth in next 5 years

Monday, 28 Feb 2011 by DJ

Chinese Premier Mr Wen Jiabao said that the government is to set its target for average gross domestic product growth for the 2011-2015 period at 7%, highlighting the shift of the country's concentration on economy development from speed to quality.

The comments, made by Mr Wen during an online chat with Internet users, comes ahead of China's annual parliament session of National People's Congress starting March 5 when China will approve economic policies for the year. The NPC this year will also approve the economic development guidance for next five years.

Mr Wen stressed the importance of people's living standard and the environment protection. He said “We'll never seek a high economic growth rate and size at the price of the environment, as that would result in unsustainable growth with industrial overcapacity and intensive resource consumption.”

Mr Wen admitted that restructuring the growth pattern will not be easy. He said “We need to make every local government know that the key impetus of economic growth lies in scientific and technological progress and in boosting domestic consumption.”

Mr Wen said the central government would adopt new performance evaluation criteria for local governments and give more weight to efficiency, environment protection and living standards.

Investors are paying close attention to China's economic growth target as they try to get a hint of the government's policy direction. The target lower than the 7.5% for the previous five years, is delivering a message that China will focus on raising the quality of economic growth.