Chinese Leaders Say GDP Goal Is Guidance, Not a Hard Target (BBG)

A BBG source report note that “China’s top leaders told government officials last week that this year’s economic growth target of “around 5.5%” should serve as guidance rather than a hard target that must be hit, according to people familiar with the matter.”

• The piece went on to note that “leaders held meetings with ministerial and provincial-level officials last week, during which they were told the target won’t be used to evaluate their performance and there won’t be penalties for failing to achieve it.”
• “The leaders also acknowledged that the chances of meeting the target were slim.”
• The language surrounding the GDP target softened in the readout covering last month's Politburo meeting, this is another step on that front. Policymakers are starting to concede that it is unlikely that the country's GDP growth target will be hit in '22.