China may lower GDP target to 7%

FXstreet.com (Barcelona) - After anticipating that a minimum growth rate of 7.2% or above is necessary in order to keep creating jobs for the Chinese economy, according to Premier Li Keqiang in comments made in an Oct 21 speech, the Financial Times has published an article providing further insights into next years's growth targets by China, noting it may cut its GDP projection to 7% by 2014, as the economy consolidates its status as world's power house.

As the FT notes, "China International Capital Corp, an investment bank headed by Levin Zhu, son of former premier Zhu Rongji, forecast in a report on Monday that the government will decide to lower next year’s growth target to 7 per cent."

China's Communist leaders continue in talks behind closed doors in Beijing today, for a meeting that is thought to set China's road map for key structural reforms for the years to come. As the FT explains: "A lowering of the growth target – although unlikely to be announced until the annual Chinese parliament in March – would be an important distillation of the government’s plans."