China’s growth of 5.5 % lowest in three decades

China revealed a growth target of  5.5 per cent, its lowest in three decades. Beijing seeks to boost its economy after a sharp loss of momentum in 2021 and fallout from the Ukraine war. However,  Beijing maintains its strict Covid measures, enforces its common prosperity policy to reduce inequality while boosting party control over the business. Premier Li Kequiang announced the target at the opening of the National People’s Congress.

The budget includes a sharp increase in defense spending which rose 7.1 per cent to Rmb 1.45tn ($229bn) its fastest pace in three years.

Economic stability is vital in China ahead of a party congress in the autumn at which  Xi Jinping is expected to begin a third term.

The second-biggest economy bounced back from the early impact of the pandemic, with the property sector under distress and consumer spending sluggish.