Last month, the Prime Minister of China Li Keqiang said that the economy would have to expand by at least 7.2% per year, thus ensuring that the urban unemployment rate will remain around 4%. This he said two weeks ago, but his statement was published only today transmits Reuters, quoted by MarketWatch.
Li Keqiang said that although 7.2% is the minimum required growth, the government's goal remains 7.5%, and ensures that it will be achieved this year. The Prime Minister urged to be monitored lending and avoid the implementation of loose monetary policy.
Keqiang warned that facilitated access to credit has exceeded the amount of USD 16.4 trillion ( or RMB 100 trillion) .
"At the end of March this year, our monetary aggregate M2 exceeds the sum of RMB 100 trillion and its size is almost as much as that of our gross domestic product, "he warned." In other words - there is enough money in circulation and the possible printing of money can cause inflation. "
"His comments confirm the Government's intention to fight inflation and signaled no change in policy," said Reuters at UBS economist Tao Wang.
Driven by a strong dependence on exports and investment, the Chinese authorities has long criticized the 8.5 trillion economy of the country as unstable and moving more unsteady path to growth.
To revive the economy, the new Chinese leaders said they are willing to accept slower expansion in exchange for a clear driver of growth for any considered consumption.
The key meeting of leaders of the Communist Party between November 9 and 12 will highlight how to be consistent in Beijing's intention to carry out reforms, according to most analysts this will undergo a test for politicians to push through unpopular measures.
According Keqiang the export could create 30 million jobs and another 70 million in other, related, sectors. "For every generated percentage point the economic growth in China's economy creates more between 1.3 and 1.5 million jobs," said Keqiang .