BEIJING: China set a 2017 growth target of “around 6.5%, or
higher if possible” as focus shifts to easing risk and ensuring stability
before a twice-a-decade leadership transition this year.
The objective outlined in premier Li Keqiang’s work report
to the National People’s Congress in Beijing compares with last year’s target
range of 6.5% to 7%. Economists surveyed by Bloomberg project 6.5% expansion
this year.
M2 money supply growth target was cut to about 12% from 13%
last year. Consumer price index target of about 3% increase was unchanged from
last year.
Fiscal budget deficit ratio goal at 3% of gross domestic
product, also unchanged yuan exchange rate would be further liberalised, Li
said.
Top leaders working to steady economic growth also are
shifting to a more neutral policy to reduce financial risks from excessive
borrowing. Economic and social stability are key priorities before president Xi
Jinping and his cadres gather later for a reshuffling of top officials, which
is planned for the fourth quarter.
“China has lowered the economic development targets across
the board,” said Zhou Hao, an economist at Commerzbank AG in Singapore.
“China’s policy stance has turned to risk control and bubble
deflating. This means that the monetary policy will gradually tighten.”
The report said “the yuan exchange rate would be further
liberalised, and the currency’s stable position in the global monetary system
would be maintained.”