Lower China GDP growth is acceptable, says Chinese premier Li Keqiang

Billy Ehrenberg
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Chinese premier Li Keqiang has said GDP growth of under 7.5 per cent is acceptable (Source: Getty)

Chinese premier Li Keqiang has indicated that if China fails to hit the 7.5 per cent target for 2014 it will not be a cause for concern, so long as wages are rising and the economy is creating jobs.

The Chinese government has embarked on a mini-stimulus programme to reassure investors that the economy's trajectory is stable after weaker than expected GDP figures for the first three months of the year.

According to Xinhua news agency, Li said:

" [a] growth rate slightly higher or lower than 7.5 percent is acceptable, as long as our development creates jobs, boosts incomes, has quality and efficiency, favors energy savings and environmental protection, and is not an exaggeration and [is] real."

Li had recently expressed confidence that GDP would rise by at least 7.5 per cent during 2014, leading investors to speculate that the government would inject new stimulus into the economy.

This latest assertion from Li could indicate a more relaxed attitude towards the economy, perhaps stemming from confidence that the mini-stimulus's effects have been felt.

Unlike developed economies that aim for GDP growth of around two to three per cent, China must aim for a higher growth rate, but has seen GDP growth slow.

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