Economics

China Lowers Growth Target and Cuts Taxes as Economy Slows

  • 2019 gross domestic product target set at 6 to 6.5 percent
  • Cut of 3 percentage points to top VAT bracket announced
China has set its 2019 GDP growth target between 6%-6.5%. Bloomberg’s Tom Mackenzie reports.(Source: Bloomberg)
Lock
This article is for subscribers only.

China lowered its goal for economic growth and announced a major tax cut, as policymakers seek to pull off a gradual deceleration while grappling with a debt legacy and the trade standoff with the U.S.

The gross domestic product growth target released Tuesday morning in Premier Li Keqiang’s annual work reportBloomberg Terminal to the National People’s Congress was set at a range of 6 to 6.5 percent for 2019. The shift to a band from the previous practice of using a point figure gives policy makers room for maneuver and compares with last year’s “about” 6.5 percent goal.