China sets annual economic growth target of 5%

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China has announced an ambitious GDP growth target of 5 per cent for 2025 despite a slowdown in the domestic economy and mounting trade tensions with the US.

The target, which has been the same for three consecutive years, comes as China is investing heavily in what it calls “new productive forces”, or advanced technology and green energy industries, in an effort to offset a years-long property sector slump.

Beijing also announced that its budget for defence spending for 2025 would increase by a nominal 7.2 per cent, in line with previous years, though analysts believe that China’s actual military spending is much higher.

The figures were contained in the government’s annual “work report”, a review of its achievements last year and economic goals for 2025, which is delivered every year before the annual meeting of China’s rubber stamp parliament, the National People’s Congress.

Premier Li Qiang, China’s number two official, is due shortly to deliver the report before the thousands of delegates gathered in Beijing’s Great Hall of the People.

While the meeting is seen as the annual highlight for the premier, who is in charge of China’s cabinet, the State Council, President Xi Jinping presides over the gathering along with other members of the Chinese Communist party’s elite seven-member standing committee.

The government said growth last year was 5.2 per cent, beating the official target for a second year in a row as Beijing stepped in with increased bond issuance to stimulate the economy and help cash-strapped local governments.

This is a developing story.