Chinese Premier Li Keqiang today presented his country’s main directions in 2022.
In particular, the Chinese premier presented the direction of the country, at the beginning of the annual session of the National People’s Congress, the Chinese parliament, in a context of slowing growth and global uncertainties.
Here are some of the key numbers worth keeping in mind.
Chinese growth
China sets a GDP growth target of “around 5.5%” this year as the world’s second-largest economy faces a slowdown.
Last year, the Asian giant’s GDP grew by 8.1% year-on-year.
But this performance was largely due to the impact of the resumption of activity compared to 2020, when the economy was paralyzed by the new coronavirus pandemic.
Growth, however, seemed to stall over the year (from 18.3% in the first quarter of 2021 slowing to 4% in the latest).
The target set, that “around 5.5%”, is the slowest rate expected since the 1990s, except for the period of the health crisis (2.3% in 2020).
Employment and unemployment in China
Beijing has set itself the goal of creating some 11 million jobs this year, a figure lower than that of 2021 (12.69 million).
This figure does not reveal how many jobs were lost due to the health crisis.
China also expects unemployment to rise this year. However, “it will not exceed 5.5%,” said Li Keqiang.
This magnitude is higher than that of 2021 (5.1%), but lower than the absolute record (6.2%) of February 2020, when the pandemic was at its peak.
And here, the numbers give a very incomplete picture of the real situation: in China, unemployment is calculated only in urban centers.
At 3.2% the GDP deficit and 3% inflation in China
In an effort to revive the economy after the pandemic, China increased its budget deficit to 3.2% of GDP.
In 2022, this ratio will return to around 2.8%. This is a size equal to that of 2019, before the pandemic.
As for inflation, the goal was set at around 3%, compared to 0.9% last year, in the context of the explosion in the prices of raw materials at the international level.
Measures to support China’s economy
As the recovery slows, Beijing promises to support small and medium-sized businesses and the self-employed.
Fiscal measures – which are mainly tax cuts – in 2022 are estimated to reach 2.5 trillion. yuan (361,800 million euros).
VAT refunds will reach 1.5 billion. yuan (217.1 billion euros), which will be “returned directly to the companies,” Li Keqiang said with satisfaction.
Chinese defense spending
Against the backdrop of escalating international tensions fueled by Russia’s military invasion of Ukraine, as well as rivalry with Taiwan and other countries bordering the South China Sea, Beijing has said it will further increase its military spending.
China will increase its military budget by 7.1% this year, the Finance Ministry said.
This percentage is higher than the growth rate of military spending last year (+6.8%).
China will get 1.45 trillion with these expenses. yuan ($230 billion) the second largest military budget in the world, behind only the US ($740 billion in 2022).
The increase in military spending is clearly higher than the projected GDP expansion.
source: iefi merida
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