Stability, sustainability key to solid macroeconomy

Editor's note: Premier Li Keqiang delivered the Government Work Report at the opening of the fourth session of the 13th National People's Congress on March 5. He set clear goals and major tasks for this year as well as the 14th Five-Year Plan period (2021-25). Among them, the GDP growth target, fiscal policy and monetary stance have caught wide attention. Here, China Daily presents considered views on two key topics from top experts of China Finance 40 Forum (CF40), a think tank dedicated to policy research on economics and finance.

GDP growth target

China did not set an economic growth target in the 2020 Government Work Report due to the COVID-19. But the country's GDP still grew by 2.3 percent in 2020, making China the only major economy to achieve positive growth in the first year of the pandemic.

In this year's Government Work Report, China resumed the convention of setting the year's GDP growth target. This year, the relevant figure is over 6 percent.

Xiao Gang, a member of the 13th National Committee of the Chinese People's Political Consultative Conference, the nation's top political advisory body, and former chairman of the China Securities Regulatory Commission:

The GDP growth target of over 6 percent for this year is a positive and steady move that is seeking truth from facts. As a comprehensive index showing the results of economic development, GDP, in spite of its limitations, is an important economic indicator, which is closely related to employment, investment, consumption, import and export indexes. Therefore, Chinese policymakers should continue setting a GDP growth target every year.

Some international organizations and market institutions forecast that China's GDP will grow by more than 8 percent this year. It does not mean the Chinese economy will return to high growth. Instead, it means the low base effect will affect the country's GDP growth this year. If the average GDP growth for last year and this year is calculated, people will find that the average growth will be lower than 6 percent annually.

Besides, this year is the beginning of the 14th Five-Year Plan period (2021-25). So, setting a GDP growth target of over 6 percent will be conducive to a smooth transition to future targets and the realization of sustainable development.

Given the current circumstances, setting a growth target will not lead to the problem of the one-sided pursuit of GDP numbers, but will be beneficial for China to concentrate on pushing forward reforms and innovations, as well as promoting high-quality development.

Liu Yuanchun, vice-president of the Renmin University of China:

The series of anticipated development goals this year shows the mindset of bottom line management, which means relevant economic indicators must reach a corresponding level of growth to ensure a continuous healthy recovery of the economy.

Achieving a GDP growth of over 6 percent would mean that resident income growth will likely reach about 5 percent, nominal corporate profit growth will likely reach 7 to 8 percent, and nominal fiscal revenue growth will likely reach 5 to 6 percent.