China sets growth target of 7.5% for 2014

Li Keqiang This is Li Keqiang's first appearance as premier at China's annual parliamentary session

Related Stories

China has set its economic growth target for the year at 7.5%, as it looks to continue its efforts to stabilise the economy.

The country also set its inflation goal at 3.5%, aimed at keeping prices in check.

After years of blistering growth rates, China has seen its rate of expansion slide after a slowdown domestically and in key markets.

In 2013, the country grew at a pace of 7.7%, about the same as in 2012.

Recent manufacturing data has also indicated a slowdown in activity in the world's second largest economy.

Start Quote

The next few years could be telling for China”

End Quote

The latest targets were announced by Premier Li Keqiang in his first appearance at China's annual parliamentary session, the National People's Congress (NPC).

China describes the NPC as the country's "supreme organ of state power".

But in practice, it is generally considered a rubber stamping body for the ruling Communist Party.

Property bubble targeted

The growth and inflation targets were widely expected.

"Officially, they are conservative and the figures are basically in line with our expectation," said Paul Tang, chief economist with the Bank of East Asia in Hong Kong.

"Slower economic growth is already expected for this year. Tightening of fixed-asset investment and lending are seen to remain as the major focuses."

Premier Li said the government would work towards increasing personal incomes, and also promised to address the property market.

Property purchases have been a popular investment choice in China - a trend that kept prices rising in 2013 and raised fears of a property bubble.

China's central bank acted late last year by tightening monetary conditions and reining in excessive lending growth.

The meeting of around 3,000 legislators from delegations across China is set to run for 10 days.

More on This Story

Related Stories

More Business stories

RSS

BBC Business Live

  1.  
    ENERGY PROBE 07:04: Breaking News

    The Competition and Markets Authority (CMA) will carry out an independent investigation to see if there are any features of the energy market which "prevent, restrict or distort competition and, if so, what action might be taken to remedy them," it says. It will report back by Christmas day 2015.

     
  2.  
    INTEREST RATES 06:56: Radio 5 live

    Kathleen Brooks of FOREX.com thinks January will be the time for a rate increase from the Bank of England. Maybe a 25 basis point increase to 0.75%, she says. Bank governor, Mark Carney, said yesterday there may be more labour supply than previously thought. Wages growth is thus being held back.

     
  3.  
    RUSSIAN SANCTIONS 06:44: BBC Radio 4
    Russian President Vladimir Putin

    Kathleen Brooks has now popped up on the Today programme. She says sanctions against Russia "are toothless at this point....Russia has a lot of energy that the West wants." She adds divisions in the West over energy policy have been exposed by the fact "the UK and France have a spat about sanctions and that just plays into Vladimir Putin's hands." Ms Brooks says there have "also been rumours that Russia has been unofficially propping up the rouble. The sanctions are not going to hurt the European Union's energy links to Russia."

     
  4.  
    ENERGY PRICES 06:31: Radio 5 live

    If you have to steel yourself with a nice cup of sweet tea before opening your latest energy bill, spare a thought for Nigel and Linda Brotherton, who were told by Npower that their monthly direct debit was going to increase from £87 to £53,480,062. Npower has apologised and the incorrect bill has been cancelled. "It's a massive shock," he tells 5 live.

     
  5.  
    GLAXOSMITHKLINE 06:24: Radio 5 live
    gsk

    David Buik of Panmure Gordon is helping us digest the GlaxoSmithKline results on 5 live. "Sales to China is only about 3% of its total business," and so the bribery scandal there is an unwelcome distraction.

     
  6.  
    ROUBLE 06:15: Radio 5 live

    Kathleen Brooks of FOREX.com is on 5 live talking about Russia. The Russia rouble has been "resilient" bearing in mind the new sanctions against Russia. "They are able to shrug off geopolitical risk quite quickly," she says. President Putin may be "breathing a sigh of relief," she adds.

     
  7.  
    POUND 06:01: Radio 5 live

    The pound buys about 1.27 euros, its strongest in nearly two years - don't get excited that's not what you'll get from your local foreign exchange. Still, Kathleen Brooks, a research director at FOREX.com, is on 5 live talking about it. The strong pound has helped ease inflation, she says. "Over the period of the financial crisis we had sky high inflation," she adds. The recovery is consumer-driven, which is aided by a stronger pound, which means cheaper imports.

     
  8.  
    06:00: Howard Mustoe Business reporter

    Good morning! Get in touch via email at bizlivepage@bbc.co.uk or on twitter @BBCBusiness

     
  9.  
    06:00: Matthew West Business Reporter

    Good morning folks. So what's new? Facebook has posted some stonking profits for its second quarter, the US has - just - lifted its ban on flights into Tel Aviv and it's Thursday, so General Motors has decided to recall another couple of hundred thousand cars overnight. There's plenty more to come, stay with us.

     

Features

  • Shinji Mikamo's father's watchTime peace

    The story of the watch that survived Hiroshima


  • Hamas rally in the West Bank village of Yatta, 2006Hamas hopes

    Why the Palestinian group won't back down yet


  • Mary WayaQueen of the court

    Woman who beat "fat" jibes to turn Malawi into netball champions


From BBC Capital

Programmes

  • A man holds a sign which reads Bring Back Our GirlsHARDtalk Watch

    Why there is still hope and optimism for the rescue of Nigeria’s kidnapped schoolgirls

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.