China lowered its 2017 economic growth target on Sunday to the much-speculated "around 6.5 percent," the lowest target in a quarter of a century, in a show of its resolve to put quality over fast growth.
China will pursue even higher rates if possible, according to a government work report delivered by Premier Li Keqiang at the opening meeting of the annual session of China's top legislature.[Special coverage]
This closely-watched target marks a 25-year low, down from last year's target range of 6.5-7 percent and actual growth of 6.7 percent.
The previous low was a 6-percent target for gross national product growth in 1992.
The expected target is in line with both economic laws and realities, Li said, adding that it will help stabilize market expectations and facilitate the country's structural adjustments.
It will also contribute to meeting the goal of building a "moderately prosperous society in all respects" by 2020.
"An important reason for stressing the need to maintain steady growth is to ensure employment and improve people's lives," Li said.
This year's target for urban job creation is over 11 million, up from a 10-million target for 2016, underlining the growing importance China attaches to employment.
"Considering our sound economic fundamentals and the capacity they bring for job creation, this target is attainable with hard work," the premier said.
A REASONABLE TARGET
China has set a "reasonable target" for economic growth, said Jia Kang, a national political advisor and chief economist with the China Academy of New Supply-side Economics.
China's year-on-year growth has slowed for six years in a row, falling from a growth rate of more than 10 percent in 2010.
The lower target was within general market expectations, as most analysts and institutions had forecast a similar target.
"We expect China to set its GDP growth target at about 6.5 percent for 2017, and it could grow 6.6 percent this year," Ding Shuang, economist with Standard Chartered, had predicted previously.
J.P. Morgan China chief economist Zhu Haibin forecast in a research note earlier this month that the target range will not change from last year, but the actual growth rate will be 6.5 percent.
The International Monetary Fund (IMF) also said in a January report that China's growth will be 6.5 percent this year.
"With more and more encouraging signs for economic improvement, the economy may find the bottom near this year's target," Jia said.
China's 6.7 percent growth last year outpaced most other economies and accounted for more than 30 percent of global growth, according to the report.
Last year, the consumer price index rose 2 percent. Industrial profits rose 8.5 percent, reversing a drop of 2.3 percent in 2015. Energy consumption per unit of GDP fell 5 percent.
