China Lowers GDP Target For 2022 To 5.5%

China has lowered its GDP target to 5.5 per cent for this year bringing it down from last year's 6.1 per cent.

The new target for the second-largest economy was announced by premier Li Keqiang in his work report presented to the National People's Congress (NPC), the country's Parliament which opened its annual session here on Saturday.

In 2021, China's economy grew by 8.1 per cent 2021 to about $18 trillion stated to be the best in a decade. The pace of the growth was well above the government target of above six per cent in 2021.

In his work report presented to Parliament, Mr Li said China plans to create more than 11 million new jobs in 2022. China plans to cut the ratio of its deficit to GDP to around 2.8 per cent for the year 2022.

The fundamentals of China's economy remain unchanged, and they will maintain long-term growth, he said.

Over 2,800 members attended Parliament which will meet here for over a week to transact the annual legislative work. 

"We must make economic stability our top priority," Mr Li said in an apparent explanation for lowering the GDP target.

"The world economic recovery lacks drive, and commodity prices remain high and are prone to fluctuation. All of this is making our external environment increasingly volatile, grave and uncertain," he added.

The exchange rate of the yuan will be maintained generally stable at an adaptive, balanced level, the premier added.

He also announced a new package of tax refunds and cuts this year to support enterprises, including a temporary exemption on value-added tax payments to small taxpayers.

With over 10 million college graduates expected to enter the job market this year, Mr Li said that the government will provide them with stronger policy support and uninterrupted services to ensure that they can find jobs or start businesses.