Economics

China’s Cautious Growth Target Limits Help to World Economy

  • GDP growth goal set at around 5%; economists expected above 5%
  • Leaders likely to avoid large stimulus as consumption rebounds
WATCH: China’s growth potential is still strong in the near term, according to Goldman Sachs.Source: Bloomberg
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China set a modest economic growth target of around 5% for the year, with the nation’s top leaders avoiding any large stimulus to spur a consumer-driven recovery already underway, suggesting less of a growth boost to an ailing world economy.

Premier Li Keqiang announced the goal for gross domestic product in his final reportBloomberg Terminal to the Communist Party-controlled parliament, which kicked off its annual meeting on Sunday. Economists had expected a more ambitious target of above 5% following a rebound in consumer spending and industrial output after the end of coronavirus restrictions.