A Chinese government thinktank, the Chinese Academy of Social Sciences (CASS), recommended that Beijing set a target of over 5% for economic growth next year as the economy slows due to continued Covid-19 issues and high commodity prices, reports Reuters.
“A target of above 5% leaves a certain room of leeway, which is a relatively prudent call. It would also allow all parties to focus on promoting reforms and innovation and pushing for high-quality development,” Li Xuesong, a researcher at the Chinese Academy of Social Sciences (CASS), told reporters.
The world’s second-largest economy is likely to grow around 5.3% in 2022, according to an annual blue book issued by CASS at the briefing, although the report cautioned that the forecast could be adjusted lower depending on the COVID-19 situation.
Advisers to the government will recommend that authorities set a 2022 gross domestic product target lower than the target set for 2021 of “above 6%,” Reuters reported, amid growing headwinds from a property downturn, weakening exports and strict COVID-19 curbs that have impeded consumption.