China has set itself a target of 2016 economic growth “between of 6.5% and 7%,” reported the NDRC on Wednesday, a powerful planning agency of the country, which also raised additional measures to reduce the severe overcapacity industrial”.
Although the second world economy will remain under “strong pressure” in the first quarter, the objective of growth in gross domestic product (GDP) over the full year is attainable, said at a press conference the chairman NDRC, Xu Shaoshi, quoted by Bloomberg.
The National Development and Reform Commission (NDRC) is responsible for overseeing the economic policies of the Asian giant.
This is the first time since the 8th five-year plan, which ended in 1995, the Chinese government has set the target of growing a range, not a precise figure, reported Bloomberg.
Beijing was in 2015 growth of “around 7%”, but finally announced in January have recorded a performance of 6.9%, the lowest in a quarter century on persistent darkening background of the economic climate.
A panel of analysts consulted mid-January by AFP was counting on an average expansion of 6.7% of the Chinese economy in 2016 … is more or less in line with the objective announced Wednesday.
For some analysts, the growth range mentioned by the NDRC may, however, be too ambitious, given the deterioration of the economy.
“Such range is too difficult challenge would require easing much further to achieve it,” said Yang Zhao, an analyst with Nomura bank.
“At present, due to strong headwinds and a lack of clarity about how the government intends to boost the economy, we maintain our forecast of a slowdown in Chinese growth to 5.8% in 2016” , he insisted.
Xu Shaoshi, at the press conference of the NDRC, has also indicated that the authorities would also step up their measures to reduce the colossal overcapacity plaguing the industry.
Overcapacity inflated by a lackluster demand, stagnant real estate investments, and a contraction in manufacturing activity. Steel and mining groups were regularly singled out by official and state media.
Similarly, said Mr. Xu, Beijing harden its measures against the “zombie companies” which are no longer profitable for a long time but continue to survive through public subsidies and a constant debt.