There have been words of caution about a difficult year ahead for China, but optimism nonetheless about expected growth.
The Chinese Premier Wen Jiabao has addressed the National People’s Congress, announcing a target of eight percent economic growth this year. Last year growth dropped to nine percent after being in double digits for the previous five years. However, contrary to what the global money markets had expected, the premier did not announce an increase in China’s financial stimulus package. The speculation had led to a boost on global markets yesterday. Wen said China’s budget deficit this year will jump to almost three percent of GDP, with more spending on housing, health, transport and job schemes. As well as the economic announcements, the Premier said China was ready to make progress towards a peace agreement with Taiwan.