China has developed the slowest in 25 years. There is a new “five-year plan” – Money.pl

China has its new five-year plan. The second largest economy in the world is faced with a slowdown in economic growth.

Premier Li Keqiang said on Saturday that his government is committed to ensure that by 2020 the Chinese economy – the second largest in the world – growing annually at a rate of 6.5 percent or higher. The aim for this year is an increase from 6.5 to 7 percent. Recall that last year the growth rate amounted to 6.9 percent and was the weakest for 25 years.

– This year, China also face many serious problems and challenges – stressed Li Keqiang in his speech in front of nearly three thousand delegates who gathered in the Great Hall of the People in Beijing during the annual session of the National People’s Congress.

According to the presented plan of the new state budget provides for, among others, smaller than in previous years, growth in defense spending – by 7.6 percent. The budget deficit is expected to increase by 560 billion yuan to 2.18 trillion yuan (about 304 billion euros) and represent 3 percent of GDP. Last year, the rate was 2.3 percent.

– The deficit is necessary, but also safe – assured the head of the Chinese government.

China has been grappling with a slowdown of economic growth . According to the latest data, China’s exports fell in January by 11.2 percent compared to the same month last year. Down he went also import – by 19 percent y / y. This is the seventh consecutive month of declines in China’s exports and 15 – imports.

On the issue of a slowdown in China also stressed in his last report, economists from the World Bank. They pointed out that the worse the condition of China is not without effect on the rest of the world. In their view, fall in GDP growth by 1 percentage point in the BRICS countries (which includes China) makes the economy of developing countries slows by 0.8 percentage point, and the global – by 0.4 percentage points.

forecasts of GDP growth in selected countries (in percent. y / y)
Country	2015	2016	2017
USA	2.5	2.7	2.4
Japan	0.8	1.3	0.9
United Kingdom	2.4	2.4	2.2
China	6.9	6.7	6.5
Russia	-3 8	0.7	1.3

Source: money.pl based on World Bank data.

the National People’s Congress, which are in fact ceremonial legislative body, meets once a year, in March, more or less two weeks to approve bills business and personal appointments. Is a legislative instrument of power exercised by the Communist Party of China.

See also: That’s what counts. The economic situation will force China to invest more in the world.

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