Ambitious growth target from China

China has set a growth target of 5.5% for 2022. Although this rate marks the lowest growth in more than 30 years, it is well above the market forecast of 5% and the IMF forecast of 4.8%. According to economists, this ambitious forecast indicates that China will increase its infrastructure spending, further lower interest rates and take further steps to stabilize the housing market. Speaking at the opening of the Chinese National People's Congress, Chinese Premier Li Keqiang said, "When we comprehensively assess the situation at home and abroad, we see that the risks and challenges facing the country's development have increased significantly this year. As things get tougher, we have to be more confident." According to the targets of the National People's Congress of China, an 8.4% increase is expected in public expenditures. However, the ratio of budget deficit to GDP is expected to decline to 2.8%. The data released this morning in China revealed that in the January-February period, dollar-denominated imports rose by 15.5% and exports by 16.3%, year on year. The deceleration of export growth, which rose by 20.9% in December, indicated that a more moderate picture has emerged in global demand together with the latest developments.