China cuts growth target to 7.5% in 2012

China expects economic growth of 7.5% this year as it looks for more sustainable expansion, prepares for a change in leadership and rides out a global slowdown.

Premier Wen Jiabao unveiled the target at the start of the annual National People’s Congress.

Despite setting a target of 8% growth over the past eight years, China has regularly grown more quickly.

This has caused problems including high inflation and a widening wealth gap.

Last year, China’s gross domestic product (GDP), or annual economic output, grew by 9.2%. In 2010 gross domestic product grew 10.4%.

Chinese leaders have said that economic stability is a priority for the country this year, ahead of its planned change of leadership in the autumn.

Analysts said a stimulus package introduced after the 2008-2009 global financial crisis had contributed to bubbles in the property market and high inflation.

High consumer prices, especially the cost of food, have previously caused unrest in China.

Boosting domestic demand is aimed at countering the effects of the eurozone debt crisis and slowing of the US economy which have led to a drop in demand globally for Chinese exports.

At least they are purposely slowing down their economy!

via www.bbc.co.uk