CHINESE President Xi Jinping called on government officials at all levels to achieve the country’s annual growth target, as economists have cast doubt over the momentum in the world’s second-largest economy.
Officials need to “strive to achieve the full-year economic and social development goals”, he told a meeting that he chaired in Lanzhou, in the country’s northwestern province of Gansu.
“All regions and departments should studiously implement all the major economic initiatives and measures introduced by the Central Committee and deliver on the economic tasks for the third and fourth quarters,” Xi said.
His comments came after a growing number of Wall Street economists, including at UBS Group and JPMorgan Chase, began predicting China may miss its economic growth goal of about 5 per cent this year, a target they say will need accelerated spending on infrastructure and other programmes if it is to be realised.
China’s US$17 trillion economy has been struggling with a prolonged property downturn that’s weighed on consumers and businesses.
Recent government efforts – including interest-rate cuts – to boost sentiment have yet to turn things around, meaning the economy continues to lean on manufacturing and exports to keep its growth target in sight.
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“The timing of the comments is likely tied to the soft data that we have observed over the last several months,” said Lynn Song, chief economist for Greater China at ING Bank.
“His comments will bring about more urgency in terms of policy support, and we will see a larger boost from that side in the coming months.”
Song hopes to see a combination of policies that will boost both investment and consumption, along with looser monetary policy to support growth. One challenge, he noted, is the decline in qualified investment projects compared to the past.
Official data due on Saturday is expected to show the economy failed to reverse a monthslong slowdown rooted in depressed demand, especially after the impact of extreme weather this summer.
Industrial production likely slowed in August for a fourth straight month, marking its longest deceleration in almost three years, according to analysts surveyed by Bloomberg.
Xi made the comments at a seminar focused on ecological conservation and high-quality development in the Yellow River basin. BLOOMBERG
