China Skips 2020 GDP Target as an Uncertain Impact of Covid-19

Chinese Premier Li Keqiang at China’s annual National People’s Congress on Friday said the country has denied setting a goal for 2020 economic growth as great uncertainties about the impact of the coronavirus.

It is the first time that China has not targeted the GDP goal since 1990.

“I would like to point out that we have not set a specific target for economic growth this year,” Chinese Premier Li Keqiang said. 

“This is because our country will face some factors that are difficult to predict in its development due to the great uncertainty regarding the Covid-19 pandemic and the world economic and trade environment,” he added.

Chinese economy contracted 6.8% in the first quarter, shrinking for the first time in decades due to the coronavirus outbreak. Meanwhile, last year, GDP expanded by 6.1%.

Premier Li Keqiang also said at the meeting that China would have a fiscal deficit for this year of “at least” 3.6% of GDP, compared to the 2.8% target set for 2019.