News Room - Business/Economics

Posted on 05 Mar 2008

China targets economic growth of 8% in 2008

China has set an economic growth target of about eight percent in 2008, according to the text of a speech Premier Wen Jiabao was to deliver to the national legislature later Wednesday.

Wen will also tell the roughly 3,000 members of the National People's Congress that government will aim for an inflation rate of about 4.8 percent this year, the same level as the 11-year high posted in 2007.

"Our goal is to maintain both steady and fast economic growth and guide all sectors of society to concentrate on changing the pattern of development, deepening reform and accelerating social development," Wen's speech said.

China's economy expanded by 11.4 percent last year, the fifth consecutive year of double-digit growth.

"The primary task for macroeconomic regulation this year is to prevent fast economic growth from becoming overheated growth and keep structural price increases from turning into significant inflation," he said.

"There are quite a few uncertainties in the current economic situation at home and abroad, so we need to keep close track of new developments and problems, properly size up the situation and take prompt and flexible measures to respond to them while keeping our feet firmly rooted in reality."

Wen will also say China expects a budget deficit of 180 billion yuan (US$25.4 billion) this year, down 27 percent from 2007.