China approves five-year plan that foresees growth of 6.5% – Jornal de Negócios – Portugal

The National Assembly of China approved this Wednesday, March 16, the thirteenth five-year plan of the country (2016-2020) which provides that the second largest economy in the world grow annually between 6.5 % and 7% in the coming years.

At a press conference held at the end of the vote, the country’s prime minister, Li Keqiang, said that , if the reforms continue, the Chinese economy will not suffer a “sudden landing.”

“We are confident that the economy will not suffer an abrupt landing, if we continue to make reforms and open the economy “abroad, said the prime minister, quoted by Reuters. “Economic productivity is being held back by unnecessary government interference and need to create a more equitable environment and with supervision.”

Li was safe that the World economy will meet the objectives set for this year and the country is in a “good position” to avoid financial risks. Also because the government will continue to promote reforms in financial markets and to improve the coordination of financial regulation, he said. Also, want to reduce red tape and reduce corporate debt.

According to the head of the Chinese government, the financial system must in the first place, to support the real economy, especially for smaller companies.

Last year, the Chinese economy grew 6.9%, the lowest rate in 25 years and short of the 7% that the government had estimated. In the same period, the services sector accounted for the first time more than half of GDP, ahead of industry and agriculture.

This is precisely one of the objectives of the Chinese government, which wants to transform the economic model of China, giving preponderance to the service of the industry, and domestic consumption on investment.

Li Keqiang returned to ensure that such restructuring that is under way – which leads to the closure of many industrial units that produce the desired effect on the economy – will not result in “massive loss of jobs.” Still, Beijing will create a fund of 100 billion yuan (approximately EUR 14 million) for subsidies and compensation for workers who lose their jobs in the process of industrial restructuring.

the outlook for this year point to inflation around 3% and the creation of 10 million jobs urban (after 2015 have been generated 13.12 million).

the document provides that the Chinese population reach the 1,420 million people by 2020 (currently around 1,280 million), 60% live in urban areas (today are 50%), that there is nobody below the poverty and the expectancy threshold of life increase in a year .