China set an ambitious economic growth target for the year, putting the spotlight back on fiscal stimulus to counter risks of an ongoing property market slump and rising geopolitical tensions.
While the growth goal of about 5.5% for this year is the lowest in more than three decades, it’s above the consensus forecast of 5% and the International Monetary Fund’s projection of 4.8% expansion. Economists said the target implies Beijing will increase infrastructure spending, cut interest rates further and do more to stabilize housing.
Premier Li Keqiang vowed at the opening of the National People’s Congress, the Communist Party-controlled parliament, to take bold steps to protect the economy as risks mount.