Why is the expected target around 5.5%

Wang Jinwen

Head photo ｜ he Jinghua (Zhongjing vision)

The GDP growth rate is one of the most concerned economic indicators during the two sessions every year. This year’s government work report set this target at an increase of about 5.5%. How to view this expected growth target?

5.5% is pragmatic and rational, reflecting the need for development. The setting of the expected target of economic growth mainly considers the needs of stabilizing employment, ensuring people’s livelihood and preventing risks. China is the largest developing country in the world, and development remains the foundation and key to solving all problems. At present, China’s economy is facing the triple pressure of shrinking demand, supply shock and weakening expectation. Under the impact of the epidemic, the evolution of the changes in the past century has accelerated, and the external environment has become more complex, severe and uncertain. To deal with various risks and challenges, we must determine a reasonable expected target of economic growth in order to solve the problems encountered in development.

5.5% is a medium and high-speed growth on the high base, reflecting the initiative. In 2021, China’s GDP increased by 8.1% year-on-year, with an average growth of 5.1% in the past two years. The growth target of about 5.5% is higher than the average, which is a positive arrangement. At the same time, this is connected with the objectives and requirements of the 14th five year plan. Some experts have calculated that China will reach the level of moderately developed countries in 2035, which requires China’s economic growth to maintain an average annual growth rate of about 6% during the 14th Five Year Plan period. At the first “Ministerial channel” of the fifth session of the 13th National People’s Congress, he Lifeng, director of the national development and Reform Commission, said that China’s total economy will reach 114 trillion yuan in 2021, and China’s economy will increase by 13 trillion yuan a year, which is the first time in the history of the Chinese nation and never in the history of world economic development.

5.5% gives consideration to speed and quality, reflecting the high-quality development orientation. It must be noted that the international environment and domestic conditions facing China’s economic development have undergone profound and complex changes. To cope with change, we can not simply talk about heroes with GDP growth, let alone ignore quality and efficiency for economic growth, or even sacrifice the ecological environment. The central economic work conference in 2021 once again stressed the need to adhere to high-quality development and promote the steady improvement of the quality and reasonable growth of the economy. Grasping the new development stage, implementing the new development concept, building a new development pattern and promoting high-quality development have become the direction of governance and the assessment index for local governments.

It is worth noting that hard work is still needed to achieve this goal. In the face of various risks and challenges, under the strong leadership of the Party Central Committee, China’s economy has made progress while maintaining stability. The heavy figures let us see the powerful driving force of China’s economic giant to resist wind and waves and move steadily and further.

Fearless of the wind and waves, the fundamentals of China’s economy have not changed, with strong development momentum and toughness. The vitality and anti risk ability of market players are also improving, which has strengthened the foundation for us to achieve the expected goal of economic growth. As the deputies and members said, with scientific prediction, solid measures and the concerted efforts of hundreds of millions of people, we are full of confidence in achieving the expected goals.

The 20th annual meeting of Chinese enterprise leaders