MNI BRIEF: China Can Achieve 5.5% GDP Target By Fiscal Push-Li

China's increased fiscal spending this year and macroeconomic policies in place ensure that a 5.5% growth target can be realised, Premier Li Keqiang told the press on Friday at the conclusion of the annual National People's Congress.

Li said setting what many consider a high GDP target is "ambitious." But he said by keeping a relatively lower 6% growth rate last year, China was able to reduce its deficit ratio, thus affording policy space for this year. China's budget deficit target for 2022 was set at around 2.8% of GDP, compared to around 3.2% last year, see: MNI: PBOC Seen Cutting Deposit Cost As It Pushes Banks To Lend.

Li, who is expected to step down after the Communist Party convenes its 20th Party Congress later this year, also commented on U.S.-China trade ties and called for more cooperation. "If the U.S. relaxes restrictions to China, bilateral trade will be even larger," said Li.

He reaffirmed China's support for Ukraine-Russia cease-fire talks, "We sincerely hope that the situation will ease and peace will return," Li said.