The importance of #GDP growth target from three perspectives by Yu Yongding from CASS:
new.cf40.org.cn/uploads/202008…
1/5
1. Without a growth target, many important indicators can't be determined. A target helps coordinate macroeconomic policies across the government and form market expectations. 2020 Government Work Report actually has an implied nominal GDP growth rate of 5.4%...2/5
2. Ensuring #employment, which has been identified as the top priority in the Report, does not conflict with economic growth. In fact, #unemployment can only be resolved through two channels: economic growth and improved unemployment insurance system...3/5
3. In 2H20, China may face the dilemma of adopting more aggressive expansionary fiscal policy to buttress growth, which could lead to fiscal deterioration, and allow further growth slowdown to alleviate fiscal pressure...4/5
The former is the "lesser of two evils" as poor growth will eventually lead to a debt-deflation cycle. 5/5
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