China Slows Economic Growth

China Slows Economic Growth

On Friday, March 11, Chinese Prime Minister Li Keqiang said that the Chinese economy would not be able to achieve the goal of gross domestic product (GDP) growth of 5.5%.

Given the slow recovery of the global economy and the crisis associated with Ukraine, as well as a decline in the real estate sector, the PRC authorities have set a course to slow down economic growth. At the same time, the new risks and problems that the economy faces require more political support from the authorities – more tax cuts for businesses.

The Chinese economy rebounded last year, posting the best growth performance in a decade, supported by strong exports and a record trade surplus. In December, retail sales rose 1.7% year-on-year.

In 2022, the goal of the country's macroeconomic policy will be not only to successfully overcome short-term pressures, but also to develop a sustainable Chinese economy. The state plans to strengthen fiscal and monetary policy and create more than 13 million new jobs.

China will also seek to expand access to its markets and attract more foreign investment in the country's industrial sector, including advanced manufacturing and strategic new industries.