Via The Motley Fool : Let’s take a look at interesting developments over the past week in the world of finance that investors should take note of.
One major development is the 2017 growth target that China’s political leaders delivered during the opening session of the country’s National People’s Congress on 5 March 2017.
China lowers 2017 economic growth target to 6.5%
In his opening address to the National People’s Congress (NPC) last Sunday, Premier Li Keqiang announced that China’s GDP (gross domestic product) officially expanded 6.7% in 2016 on the back of record bank loans, a speculative housing boom, and government investment that ran up to the billions.
Although 2016’s growth rate was the slowest for China in 26 years, it is still well within the government’s target range of 6.5% to 7% growth.
Besides sharing the economic performance of China in 2016, Premier Li also noted that the Chinese government is lowering its growth expectation in 2017 to 6.5%. The government’s move is to ensure the that it can focus on cooling down an overheating housing market, slowing down new credit formation, and push through supply-side reforms.
It’s no secret that China has been on a quest to transform its economy in recent years, and the country will continue to push forward with driving employment and general economic growth through domestic consumption and private investment.
On the topic of China’s fiscal policy, Premier Li said that the government would be aiming to reduce companies’ taxes by 350 billion yuan (around US$51 billion) in 2017. As for monetary policy, the Chinese government is looking to maintain a prudent and neutral policy stance.