Arab Press

بالشعب و للشعب
Sunday, Apr 26, 2026

China decides not to set a GDP target for 2020 as coronavirus batters the economy

China decides not to set a GDP target for 2020 as coronavirus batters the economy

Chinese Premier Li Keqiang shared the government’s outlook Friday as part of China’s annual parliamentary meeting, delayed by about two months this year due to the coronavirus. Last year, GDP expanded by 6.1%, just making the official target range of 6% to 6.5%.

China made a rare decision not to set a target for its economic growth for 2020 due to uncertainties about the impact of the coronavirus.

“I would like to point out that we have not set a specific target for economic growth this year,” Chinese Premier Li Keqiang said in an English-language text of the work report delivered on Friday.

“This is because our country will face some factors that are difficult to predict in its development due to the great uncertainty regarding the Covid-19 pandemic and the world economic and trade environment,” Li said.

The remarks are part of China’s annual parliamentary meeting, which was delayed by about two months this year due to the coronavirus outbreak that began in China last year and has since spread globally.

As a result, some analysts expected ahead of the report that Li might share a GDP target for a timeframe other than 2020 itself. Last year, GDP expanded by 6.1%, just making the official target range of 6% to 6.5%.

“The fact that they dropped the GDP growth target is a good thing if it means that they really intend to let sustainable demand - consumption, exports, and private sector investment - drive growth,” Michael Pettis, professor of finance at Peking University, said Friday in an email.

“If they have only dropped it temporarily while they try to figure the full impact of the pandemic, and later select an implicit target that relies heavily on non-productive spending on infrastructure and real estate, then this really doesn’t change anything,” Pettis said.

China’s economy contracted by 6.8% in the first quarter, while unemployment has stayed near historic highs. Although data have shown some recovery in April, officials have publicly aired concerns about a drag on growth from the coronavirus’ spread overseas.

Economists have cut their growth forecasts for the official GDP - a figure that many economists often doubt. In late March, Beijing-based China International Capital Corporation (CICC) notably lowered its real GDP growth estimate to 2.6%, down from 6.1% previously.


Employment remains top priority


While China did not set a GDP target for the year, authorities still laid out some specific numbers for items such as employment and inflation.

Li stressed that ensuring people have jobs will remain a priority, as it was last year. Beijing will target an unemployment rate of 6%, as measured by the official urban survey, Li said.

That’s up from last year’s goal of 5.5%. The number of new jobs promised, “over 9 million,” was fewer than the 11 million targeted last year.

The consumer price index target was set at around 3.5%.

Covid-19 emerged in the Chinese city of Wuhan late last year and has killed more than 4,600 people in the country. The outbreak has since become a global pandemic, infecting more than 5 million people and killing more than 330,000 people worldwide.

The world’s second-largest economy has been the first to impose — and emerge from — government lockdowns on businesses and social gatherings. The outbreak stalled domestically by early March, and by the end of April, most businesses that survived the lockdown had resumed work, although not necessarily at the same level of operations prior to the pandemic.


China to issue more debt


During Friday’s opening ceremony of the NPC, Li laid out a plan for moderate increase in government support for the economy.

He also said the fiscal deficit will increase from last year by 1 trillion yuan ($142.86 billion), for a deficit-to-GDP ratio of more than 3.6%.

“On top of this, one trillion yuan of government bonds for Covid-19 control will also be issued,” Li said, calling them “extraordinary measures for an unusual time.”

Special local government bonds for project development will also increase by 1.6 trillion yuan over last year, for a total issuance of 3.75 trillion yuan, Li said.

China will step up construction of new types of infrastructure that will help expand the reach of 5G and electric car charging facilities, Li said. The country will also boost efforts for water conservancy, and increase national railway development capital by 100 billion yuan.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
News Roundup
Strategic Saudi-Bahrain Causeway Closed Amid Security Concerns as Trump Deadline Approaches
Saudi Arabia Keeps Red Sea Oil Exports Flowing Despite Regional Tensions
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
Saudi Business Leader Abudawood Appointed Chairman of Merit Incentives Group
TotalEnergies Confirms Damage at Saudi Refinery Following Security Incident
Saudi Arabia Launches Early Construction Phase for King Salman Stadium Project
Saudi Shift Away from Longstanding Dollar Oil Framework Gains Attention Amid Iran Conflict
Türkiye and Saudi Arabia Resolve Long-Running Transit Visa Dispute
Saudi Oil Capacity and Pipeline Flows Reduced as Supply Risks Intensify
TotalEnergies Reports Damage to Saudi SATORP Refinery Following Security Incidents
Gulf States Assess Prospects of U.S.-Iran Truce as Regional Stability Efforts Intensify
South Korea Resumes Honey Exports to Saudi Arabia Following Sanitary Approval
Saudi Arabia Carries Out Sentences in Eastern Province Following Security Convictions
Saudi Sovereign Wealth Fund Backs King Street’s Regional Credit Strategy
Saudi Arabia Secures World Cup Return as Egypt Celebrates Landmark Qualification
Iran and Saudi Arabia Intensify Diplomatic Engagement Amid Regional Tensions
Russia and Saudi Arabia Open Visa-Free Travel Corridor for Citizens
Saudi Oil Output Capacity Reduced by 600,000 Barrels Per Day Amid Regional Conflict
Saudi Arabia Suspends Operations at Select Energy Sites as Precautionary Measure
Saudi Arabia Halts Operations at Multiple Energy Facilities Amid Heightened Tensions
Global Markets Jolt as Iran Signals Ceasefire Breakdown and Rising Regional Tensions
King Street Aligns with Saudi Sovereign Wealth Fund to Expand Alternative Investments in Middle East
Attack on Saudi Arabia’s Jubail Petrochemical Hub Raises Global Supply Concerns
Debate Emerges Over Saudi Strategic Decisions as Gulf Cooperation Council Dynamics Come Into Focus
Saudi Arabia Expands Full Workforce Localisation to 69 Professions in Major Labour Reform
Emerging Alliance of Pakistan, Turkey, Egypt and Saudi Arabia Signals New Regional Power Dynamic Amid Iran Conflict
Iran Linked to Strikes Across Gulf States Following Refinery Attack Escalation
Saudi Arabia Voices Concern Over Fragile US–Iran Ceasefire Stability
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
Saudi Arabia’s Key East-West Oil Pipeline Targeted Following Ceasefire Announcement
Iran Targets Saudi Arabia’s East-West Oil Pipeline in Escalating Regional Tensions
Trump Warns of Civilizational Stakes as Iran Halts Negotiations
Saudi Companies Expand Remote Work Measures Ahead of Iran-Related Security Concerns
Iran Warns of Strikes on Saudi Energy Infrastructure if US Targets Its Facilities
Iran Urges Civilians to Form Human Shields Around Nuclear Sites as Diplomatic Deadline Approaches
Saudi Arabia Raises Oil Prices to Record Premiums Amid Supply Pressures Linked to Iran Conflict
Key Saudi-Bahrain Causeway Closed Amid Heightened Security Concerns Linked to Iran
Formula One Calendar Gap Explained as Fans Await Next Grand Prix
Growing Strain on the Petrodollar System Comes Into Focus Amid Iran Conflict
Reported Strike on Saudi Arabia’s Jubail Complex Raises Global Energy Supply Concerns
FedEx Introduces New Digital Tool to Streamline Imports into Saudi Arabia
Iran Claims Strike on Saudi Arabia’s Jubail Petrochemical Complex Amid Rising Regional Tensions
Taiwan to Source Oil Shipments from Saudi Arabia’s Red Sea Ports
Saudi Arabia Evacuates Riyadh Financial District as Precaution Amid Regional Tensions
Saudi Arabia Balances Ambitious Economic Vision Amid Regional Tensions and Financial Pressures
Budget Saudi Arabia Reports Strong Full-Year 2025 Financial Performance
Saudi Arabia Expands Investment in Capcom With Stake Reaching Six Percent
Saudi Arabia Assesses Significant Economic Impact From Regional Conflict Involving Iran
US Beef Secures Expanded Market Access in Saudi Arabia
×