China’s Forecast: China sets a way below market expectations growth target for 2021.

China, earlier today, set a modest annual economic growth target, at above 6%, and pledged to create more jobs in cities than last year, as the world’s second-biggest economy emerged from a year disrupted by the effects of COVID-19.

Despite China’s GDP expanded 2.3% last year, the only major economy to see growth. But the 2021 target was significantly below the consensus of analysts, who expect growth could beat 8% this year and the 7.9% forecast from the International Monetary Fund in its latest World Economic Outlook.

The forecast suggests that Beijing wants to withdraw some of the powerful stimulus measures it put in place last year, mindful of the sharp rise in debt (both public and private) over the last 12 months.

Also, In line with an improving economy, the Chinese government is targeting a 2021 budget deficit of around 3.2% of GDP, less than a goal of above 3.6% last year.

Base metals prices, which had fallen sharply yesterday, recovered overnight thanks to this and Chinese shares fell.

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