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- China's shift away from 5-year targets increases policy flexibility: official
China's shift away from 5-year targets increases policy flexibility: official
Reuters reports that a senior state planner official said that China’s decision not to set an economic growth target for its new five-year plan will give policymakers more room to account for uncertainties and respond to changes.
In its 2021-2025 economic plan China did not include any average annual growth targets. It did, however, pledge to keep growth in a “reasonable” range over the five-year period and set an annual gross domestic product target of above 6% for the current year, having dropped the 2020 target last year amid global uncertainties caused by the pandemic.
Hu Zucai, vice director of the National Development and Reform Commission, said on Monday predicting growth for an annual period contingent on the circumstances would be easier than setting targets over a five-year period.
“By not setting a specific and quantitative (five-year) growth target, we will be more proactive, active and at ease in coping with all sorts of risks, which is conducive to boost the flexibility of our development,” Hu told a press conference on the sidelines of the annual parliament meeting. He added that it also helps to guide agencies to focus on improving the quality of efficiency of growth, instead of just numerical growth.
“We are confident that GDP will maintain a certain level (over the next five years),” he said.
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