China announced Tuesday it expects the economy to grow at a slower pace in 2019 than last year, in line with many economists’ expectations.
Premier Li Keqiang said the official economic growth target this year will be 6.0 to 6.5 percent. The world’s second largest economy reported growth of 6.6 percent in 2018, the slowest pace since 1990.
Li was set to open the annual National People’s Congress on Tuesday.
Beijing is attempting to maintain stable growth, while reducing the economy’s reliance on debt. Many criticized the government’s efforts in late 2017 and early 2018 as overly harsh, causing authorities to reverse their tone in the second half of last year with announcements of stimulus plans.
Trade tensions with the U.S., China’s largest trading partner, has also pressured growth. Zhang Liqun, research fellow at the Macroeconomic Department of the Development Research Center of the State Council, said last week that due partly to trade tensions, many export-related companies in Guangdong let their employees go on vacation in November with no clear plans for further production.
Retail sales have also slumped as consumers remain uncertain about the economic outlook.
This is a developing story. Please check back for updates.
