MercoPress. South Atlantic News Agency

China targeting economic growth of 8% and 4% inflation for 2011

Zhang Ping, head of the National Development and Reform Commission

The Chinese government is targeting economic growth of around 8% and inflation of around 4% next year, state television reported this week, citing Zhang Ping, the head of the National Development and Reform Commission.

The inflation target for next year is above this year's target of around 3%, reflecting rising inflation pressures, partly due to surging food prices and rapid fund inflows.

Investors are paying close attention to China's economic targets for next year as they try to get a better sense of the government's policy direction after the country's top political leaders decided to shift to a “prudent” monetary policy next year from a “moderately loose” one now.

However, China has set an annual economic growth target of around 8% for several years in a row now. The government has said the figure should be treated more like “a guidance” than an exact prediction.

Zhang, speaking at an NDRC conference, said the consumer price index will likely rise more than 3% this year, while GDP growth will be no lower than 10%, the report said.

He also said the government's 4 trillion Yuan investment plan included in the economic stimulus program introduced in 2008 to cope with global financial crisis is almost complete, the report said.