China will strive for positive economic growth this year, says Premier Li

Chinese Premier Li Keqiang attends the closing session of the National People’s Congress (NPC) at the Great Hall of the People in Beijing, China May 28, 2020. — Reuters pic
Chinese Premier Li Keqiang attends the closing session of the National People’s Congress (NPC) at the Great Hall of the People in Beijing, China May 28, 2020. — Reuters pic

BEIJING, May 28 — China will strive for positive economic growth to recover from the impact of the coronavirus pandemic this year, despite not setting a growth target, Premier Li Keqiang said today, promising more support if the economy faced further disruption.

“We have reserved policy room. Be it fiscal, finance, or social security,” Li said during his once-a-year news conference following the close of the annual meeting of parliament.

China does not need a massive stimulus but growth remains important, and liquidity will be increased because “exceptional situations call for exceptional measures”, he said in response to a question from Reuters.

Investors have been expecting Beijing to roll out a large stimulus measures to pull the world’s second-largest economy out of an unprecedented downturn, and some were disappointed at the unusual decision not to set a growth target.

Li stressed the focus of policymaking had shifted towards ensuring stability in employment, financial operations, foreign trade, foreign investment, domestic investment, and market expectations.

“We can introduce new policies in a timely manner, and we will not hesitate to maintain the stable operation of the Chinese economy, which is paramount,” the premier said.

The government has pledged more government spending and an fiscal deficit target of at least 3.6 per cent of GDP. Based on fiscal measures announced so far, the stimulus the government plans to roll out is equivalent to about 4.1 per cent of China’s GDP, according to Reuters calculations. — Reuters

Related Articles