China appears to have dropped its goal of achieving its 2022 growth target, with the latest comment from the ruling Communist Party simply stating that the nation will “strive to achieve the best possible results”.
As the rest of the world reopens, China persists with its “Zero Covid” strategy and has implemented numerous lockdowns in major cities, stifling growth. The world’s second-largest economy only narrowly avoided contracting in the second quarter.
First-half GDP only rose 2.5% from one year previously, with fears of a global recession and the instability created by Russia’s invasion of Ukraine war also playing a significant role alongside Covid restrictions.
As a result, China looks set to miss its growth target for the first time since 2015. State media had reported in April that the nation was striving to achieve the targets set for 2022, but the latest reports simply state that the nation will “stabilize employment and prices, maintain economic operations within a reasonable range, and strive to achieve the best possible results”.
The reports echo a change in rhetoric from Chinese premier Xi Jinping. Speaking at the opening of a BRICS forum on June 22nd, Xi talked up the possibility of achieving China’s economic goals, yet just six days later during an inspection tour of Wuhan the Chinese President said his nation will “strive to reach a relatively good level of the economic development this year”.
Analysts have revised projections for Chinese GDP growth in 2022, dropping to 4.1% from the 4.5% previously predicted, and well below China’s original target of 5.5%.