05.03.201602:09:00UTC+00Chinese Premier Sets Growth Target, Loosens Fiscal Stance

China sets growth target for 2016 and loosened the fiscal stance to alleviate its deep-rooted domestic problems amid challenging global environment.

At the 12th National People's Congress in Beijing, Premier Li Keqiang said the economy is forecast to grow 6.5 to 7 percent this year and an average growth of above 6.5 percent in the next five years.

The authorities have set a range for growth instead of a target figure for 2016.

The government has taken into consideration the need to finish building a moderately prosperous society in all respects and the need to advance structural reform, Li said Saturday.

He cautioned that the country faces tougher problems and severe challenges and it should be fully prepared to fight a difficult battle.

In 2015, the economy grew at the slowest pace in 25 years, when GDP climbed 6.9 percent compared to the government's full-year target of about 7 percent.

The work report was released with the 2016 budget and the 2016-2020 Five Year Plan.

Li said 10 million new jobs will be created and the urban registered unemployment rate will be kept below 4.5 percent this year.

The government plans to raise its defense spending by 7.6 percent in 2016. The budget deficit forecast was raised to 3 percent of GDP from 2.3 percent in 2015.

China aims to double its 2010 per capita income by 2020. This year the government didn't provided a target for foreign trade.

The reform package includes tax reduction, cut of overcapacity and flexible monetary policy. Money supply is forecast to grow by 13 percent, up from 12 percent targeted last year.