China’s Xi vows ‘more forceful’ tools to achieve economic goals

Source: CNBC | Original Published At: 2022-06-23 04:45:27 UTC

Key Points

• Xi Jinping emphasized using stronger measures to meet China's 2022 economic targets
• Analysts have lowered GDP growth forecasts due to strict COVID controls
• Government stimulus measures described as "more effective" in Chinese text vs "more forceful" in English translation
• Targets include 5.5% GDP growth, 3% CPI increase, and urban unemployment ≤5.5%

China is hosting the annual BRICS summit virtually this year. Pictured here is Chinese President Xi Jinping speaking via video at the United Nations General Assembly in New York, U.S., on Tuesday, Sept. 21, 2021.

BEIJING — Chinese President Xi Jinping made a rare statement Wednesday about his country’s aims to achieve its economic goals for the year.

Investment analysts have cut their forecasts for China’s GDP growth to well below the official target after stringent Covid controls restricted business activity in the last few months. Government stimulus has been relatively muted so far.

“We will step up macroeconomic policy adjustment, and adopt more forceful measures to deliver the economic and social development goals for the whole year and minimize the impact of COVID-19,” Xi said Wednesday, according to an English-language state media readout.

He did not share details on what kind of measures would be used to support growth. Rather than “more forceful,” Chinese text of the speech published by state media described forthcoming measures as “more effective,” according to a CNBC translation.

However, Xi’s unusually direct language mark a rare public mention by a senior leader of the full-year economic targets since they were set at an annual meeting in mid-March.

Those goals include unemployment in cities of “no more than 5.5%,” an increase in the consumer price index of “around 3%” and GDP growth of “around 5.5%.”