China sets 6% GDP growth target in 2021, pledges to create nearly 11 million urban jobs

Xi Jinping
China has successfully emerged out of the COVID-19 coronavirus pandemic and is better placed than its peers

China is way ahead on the growth ladder despite COVID-19 led global recession of 2020 and has now set its annual economic growth target at 6 per cent in 2021. Also Read: China arrests bloggers ahead of introducing new regulations to crush free speech online

What it means: The aggressive economic growth target of 6 per cent means that China has successfully emerged out of the COVID-19 coronavirus pandemic and is better placed than its peers. In 2020, Chna only grew by a tad over 2 per cent. The 6 per cent GDP target is also important if China wants to meet resident Xi Jinping’s plan of doubling China’s growth by 2035. Also Read: US-China relations: Joe Biden sets his sight on new and more confident China

  • Despite the positive growth target, China has to deal with aggressive U.S. administration which is expected to put greater stress on human rights-related issues
  • Experts also suggest that low level of growth target could be a result of China being worried about the return of the COVID
  • China is looking to create more jobs in 2021, over 11 million urban jobs compared to the target of 9 million jobs in 2020

The new target led to the surge in Asian markets before they fell as investors realized that Chinese economy would easily manage to achieve the target given 2020’s low base. Also Read: Clubhouse – A sanctuary for liberal and progressive voices in China

What’re they saying: “In the aftermath of the pandemic, a low bar should allow most provinces to cross the hurdle without over-stretching themselves financially,” Aninda Mitra, senior sovereign analyst at BNY Mellon Investment Management, said according to the Reuters.

Iris Pang, chief economist for Greater China at ING, said “The very low GDP growth target is like there is no target at all because the consensus is 8% and my forecast is 7%.” Also Read: Myanmar edges closer to Putin’s Russia to avoid frenemy China

China economist at Standard Bank. Jeremy Stevens said, “8% is more plausible”

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