Reuters report that the World Bank said on Tuesday that China can afford to cut its 2015 economic growth target to 7 percent and still keep its labour market healthy:
- Urged China to stop setting rigid growth objectives
Karlis Smits, a senior economist at the World Bank office in Beijing, told reporters at a press briefing:
- “Our policy message is the focus should be on reforms rather than meeting specific growth targets”
- “A prevalent concern is that a policy focused on meeting an ambitious growth target, similar to one set for 2014, would require macroeconomic policies to remain oriented to support domestic demand rather than on reforms”
