By resisting the global recession in 2020 due to COVID pandemic, China has reduced the economic lapse with the United States. Despite it, it still only grew 2.3% in 2020. Currently China’s aim is to gain speed, let GDP reach higher levels.
Premier Li Keqiang on Friday announced that China would target growth of more than 6% in 2021.
The new target is more than what China needs to accomplish to get back on track with President Xi Jinping’s long-term goal for the economy. To reach Xi’s plans to double GDP by 2035, China would need to grow a bit less than 5% this year, with similar growth through the next decade or so.
“In setting this target, we have taken into account the recovery of economic activity”, – Li said on Friday, adding that the goal would “help sustain healthy economic growth”.
In 2021, China aims to create over 11 million new urban jobs.
A balanced recovery
China spent hundreds of billions of dollars last year on programs to stimulate economic activity, including major infrastructure projects and cash handouts for its citizens. That amount of spending isn’t carrying over to 2021.
Li said Friday that China has set the budget deficit for the year at about 3.2%, slightly lower than that of last year, “in view of the effective containment of Covid-19 and gradual economic recovery”.