China’s economic forecast: an overview of the different segments
China has published a forecast of economic development for the current year. According to the document, GDP growth is expected at 6%, which will be achieved by reforming the current management system.
In 2020, the country’s growth rate slowed to 2.3%, which was the worst indicator for 40 years. In the previous period, China’s GDP was about $16 trillion.
The first 3 months of 2020 were the least successful for the state, then the economy showed negative growth and GDP fell to 6.8%, which had not been seen since the revolution in 1976.
As for the budget deficit this year, it will be about 3.2%, which is slightly lower than previously observed. Inflation is expected to be 3.6% of GDP, and domestic price growth is expected to be about 3%. As for last year’s figures, inflation was 2.9%, a value that was not as serious as in the forecast that analysts published in 2020 – 3.5%.
The unemployment rate is expected to be around 5.5%, with the authorities planning to create more than 11 million new jobs. This figure is still high, and has remained virtually unchanged since last year. And the government regularly introduces measures to improve the situation, with 11.86 million urban and rural jobs added in 2021.
The PRC authorities emphasize an increase in the volume of exports and imports as an important direction for the country’s development. To this end, new rules will be introduced to regulate tariff policy. Representatives of medium and small businesses engaged in international trade can count on credit support from the government. Such initiatives will expand ways for small companies to develop and increase the volume of exports.
In 2020 the volume of trade in China had increased by 1.5%, in terms of money it amounted to 4.7 trillion dollars. Exports rose 3.6% to $2.6 trillion, while imports fell 1.1% to $2.1 trillion.
This year, China plans to increase its military budget by almost 7% to $209 billion. It should be noted that the country’s defense spending is growing regularly, ranking second in the world after the U.S. in terms of their volume. Increased investment in the military industry has caused concern and criticism in other countries. Chinese authorities say the growth of defense spending corresponds to the pace of the country’s economic development.
For 5 years, China has seen a decrease in taxes and fees, totaling 1.17 trillion dollars. This policy has given a good impetus to the development of local businesses.
