The highest policy-making body of the governing Communist Party, the Politburo, said on Thursday that it seeks to maintain growth within “a acceptable range.”
It made no mention of the previously stated official growth objective of 5.5 percent.
China is still enforcing its zero-Covid policy, which has resulted in complete or partial lockdowns of key cities.
The 25-member Politburo, which is presided over by President Xi Jinping, said in a statement after its quarterly economic conference that leaders will “strive to achieve the greatest outcomes possible.”
It also urged the stronger provinces to aim toward achieving their growth objectives.
Although economists had before projected it would be difficult for China to attain its 5.5 percent objective, analysts said the absence of a GDP statement was striking.
According to Iris Pang, senior economist for China at ING Bank, “the 5.5 percent GDP objective is no longer a requirement for China.”
They also said that China was pressing the bigger provinces to compensate for the smaller ones that were more severely impacted by the shutdown.
Beijing recommended that reasonably well-positioned provinces work to meet their economic and social goals for this year, according to a note from Nomura analysts Ting Lu, Jing Wang, and Harrington Zhang.
In particular, those areas that were severely impacted by the Omicron variation and lockdowns, “we believe Beijing is hinting that GDP growth objectives for regions with less favorable circumstances should be more flexible.”
China reported earlier this month that the second quarter of this year saw a significant decline in its GDP.
Large Chinese cities, notably Shanghai, the country’s principal industrial and financial center, were either completely or partially placed under lockdown at this time.
Home sales have decreased for 11 straight months in China’s once-booming real estate sector, which is now experiencing a severe downturn.
Due to worries about cash flow, a number of Chinese developers have put a stop to the building of houses that have already been sold.
Some homebuyers have threatened to cease making mortgage payments in recent weeks until the job picks back up.
In view of the epidemic, China took the unusual decision to abandon its GDP objectives in 2020.
GDP is a gauge of economic size. Economists and central banks regularly monitor the economy’s growth or contraction as one of the most crucial indicators of how well or poorly it is doing.
Additionally, it assists firms in determining whether to grow and hire more employees or spend less and reduce their workforces.