China's slow growth, focusing on rebalancing the five-year plan
12:37
zhbjzhql
, Posted in
In the last five-year plan, China has set a target of 7 5pc annual, but considerably exceeded growth annually. Photo: EPA
Meeting key 202 leaders in Beijing China 2011 to 2015 roadmap discussed and agreed on the need for the second global economy to increase wages and improve its domestic consumption.
No target was defined for economic growth, but a release issued after the meeting said that China would seek to maintain "a stable and relatively fast growth economic" in the period.
In the last five-year plan, China has set a target of 7 5pc annual growth, but considerably exceeded it each year, the economy is expected to grow this year by 10pc autour.
"China has a large population and the main task is to maintain work f.l. ' economy to grow at a certain rate to achieve this goal, but it is clear that in recent years the Government has emphasised over these objectives and which is not sustainable," said Chen Xumin, Commercial Bank economist Nanchong.
"By saying that they want a fast-growing"relatively", they may serve will that GDP expand quite rapidly to ensure employment, but at a rate slower in the passé.Je can't guess the exact figure, but it is likely that there will be a slowdown in the next five years", he added.
Alistair Thornton, an economist at IHS Global Insight in Beijing, said that the Government may choose to notch his official objective of 7 5pc to 7pc.
"Warning of course is that they have exceeded the goal five last years some coup.Je think that they will be more rigorous and more stringent forward to try to keep more close to the official target."We will forecast 10pc growth this year, slow 9pc year next, and then 8pc, ", he said.
Hu Jintao, China's President, has promoted the idea of "inclusive" growth, which would be more Chinese share in prosperous countries wealth gap shrinks and workers enjoy higher wages and more great benefits.
China has one of the largest wealth disparities in the world, with the richest 10pc gain 65 times the average wage of the poorest 10pc, according to a study sponsored by Credit Switzerland Chinese economists.
"China will still increase the incomes of the population, improve the social construction and deepen the reform and opening," said the official statement of the meeting.
By increasing wages, China aims to expand domestic demand and officials have said that their intention to create "mechanism in the long term to increase consumer demand and accelerate the consumption.
China is facing increasing political pressure to curb its economy led by investment and promote domestic demand in order to re-balance the global economy and reduce the huge trade surplus of the country.
Full details of the five-year plan is not released until mars.Le plan is a document non-binding, which aims to provide a plan of action for the Communist Party's social and economic objectives.
