All eyes on China and commodity markets as Premier Li Kequang announces 7%
floor on growth.
Premier Li Kequang was quoted as saying that economic growth could not dip below 7% as that was the required rate to ensure the Chinese economy doubles in size this decade. A 7% growth rate would however be the lowest level of growth since 1990, although some have remained sceptical of the figures produced by China.
China had originally set a growth target of 7.5% for 2013 at the annual session of the National People's Congress, the nation's legislature, in March.
Currently the government has steered clear of simply spending to support a “slowing economy” which has led to many analysts dropping their growth forecast for 2013 to below 7.5%. On July 10th Mr Li was quoted in a statement posted on the Government’s website as saying “As long as the economic growth rate, employment and other indicators don't slip below our lower limit and inflation doesn't exceed our upper limit we'll focus on restructuring and pushing reform."
Meanwhile just two days ago, the official Xinhua News Agency was questioning the government's apparent willingness to tolerate a slowing economy.
Mr. Li also told the meeting that a "reasonable" growth target of 7.5% was set with maintaining labor market stability in mind. He added that the government's tolerance for consumer inflation was 3.5%, according to the