The Chinese government is reportedly planning to set a target for economic growth that is lower than 6.5% in 2019. That way, the growth target for this year is lower than last year.
Reuters sources said a number of factors were taken into consideration by the government. Among the effects of tariffs imposed by the United States regarding trade swords with China.
The economic growth target is planned to be announced officially next March.
Until the end of last year, China’s economic growth is estimated to grow by around 6.6% and become the slowest growth since 1990.
Some analysts also see the challenge for China to spur growth this year will be heavier. “It is very difficult for growth to reach growth of more than 6.5% this year. And if growth is below 6%, it might cause bigger problems,” said a source who asked not to be named because of the sensitivity of the issue.
At least economic growth above 6.2% is needed by China in the next two years to fulfill the ruling Communist Party’s goal of doubling gross domestic product and income by 2020.
“Considering employment, income and stability, China needs growth of at least 6% this year,” said another source.
Previously the government planned to maintain the consumer inflation target of 3% for 2019. Although the inflation trend in the past few months has shown a decline. Data this week showed China’s consumer inflation fell to 1.9% in December from 2.2% in November.