LONDON, May 26, 2020 /PRNewswire/ -- The 22nd
May marked the first day of China's 2020 National People's Congress. The
overall message from this meeting was to achieve macroeconomic
stability following COVID-19.
Premier Li Keqiang announced a stimulus package worth 6% of GDP
or RMB6 tn ($840 bn). No GDP growth target was announced for
2020. Markets were disappointed. In contrast, the package is bang
in line with our expectations. We see it as net positive news
for the economy and commodities markets in 2020.
A target for unemployment but not for GDP growth
- What we expected: No growth target. Employment of primary
concern.
- Announced: No growth target. Aim to create more than 9 million
urban jobs, and target for the urban registered unemployment rate
at 5.5%.
As expected, China's government
decided not to set a target for GDP growth in 2020. They justified
this with respect to the high uncertainty in the aftermath of the
COVID-19 crisis. They confirmed their focus on maintaining
employment, people's livelihood, and intentions to eliminate
poverty among all rural residents.
Fiscal stimulus of 6% of GDP
- What we expected: Fiscal stimulus of 5-8%.
- Announced: Fiscal stimulus of 6%.
Read the full story:
https://www.crugroup.com/knowledge-and-insights/insights/2020/cru-s-bold-calls-on-china-stimulus-were-right/
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SOURCE CRU