China’s leaders are about to set their lowest economic growth goal since at least 1990. How can they get away with it? Premier Li Keqiang is expected to announce this year’s target for growth in gross domestic product of about 7 percent when he gives his “work report”—China’s version of the State of the Union—to launch the National People’s Congress on Thursday morning.
China’s Communist Party has long maintained a pact of sorts with the people. The leadership has guaranteed rapid economic growth to boost business and lift incomes. In turn, the people shouldn’t demand the right to choose their civil servants or openly criticize the party.
That tacit deal has started to fray in recent years, with workers, farmers, and urbanites becoming increasingly outspoken about grievances over unpaid wages, land grabs, and rampant pollution. Meanwhile, economic growth was 7.4 percent last year—its slowest pace since 1990 and well below the almost 10 percent average annual growth that marked the first 25 years following the launch of reform and the opening of China in 1978.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.