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New Economic Targets in China

China has set a growth target of 7.5% for the year aiming at bringing economic stability. In an attempt to keep its prices in check, the country has also set the inflation rate at 3.5%. After a long period of spectacular growth, China has seen a drop in its expansion rate after the slowdown in domestic and key markets.

The country reached 7.7% in 2013 similar to the situation in 2012. According to some recent economic data the world’s largest economy suffered a decline in the manufacturing sector.

China’s Premier Li Keqiang announced the new targets set for 2014 at the National People's Congress (NPC), a parliamentary session held annually.  The NPC is considered to be the supreme body of state power in China. But, in fact it is the rubber-stamping agency for the Communist Party.

Real Estate Bubble – New Target

China has expected growth and inflation targets. Paul Tang, chief economist with the Bank of East Asia, said that the current figures fit all the expectations. In addition a slower economic increase is also expected for 2014. The major focus still remains on lending and fixed-asset investment tightening.

Li Keqiang announced that the government would be directed towards increasing personal incomes and also promised to concentrate on property market.  Real estate purchasing has been one of the most popular investments in China. Property prices kept rising and caused fears of property bubbles.  The central bank took the action late in 2013 by tightening the monetary policy and stopping the strong lending growth.

The meeting will run for 10 days and over 3000 legislators from delegations across China will attend.