A 6% Growth Rate No Special Figure for China: Cabinet Researcher

(Bloomberg) --

China shouldn’t attach too much significance to the 6% growth rate, a government economist said, as debate heats up over economic targets for next year.

“6% is not a special watershed,” said Wang Yiming, a deputy director at the Development Research Center of the State Council in an article published in the People’s Daily Tuesday. “The growth rate, may it be higher or lower, is not the main problem. The key is the quality and efficiency of growth,” Wang said.

At the same time, he argued that it is still important to maintain a mid to high growth rate. Low gross domestic product expansion will pose challenges to employment and controlling the overall leverage ratio, and will leave little room for structural adjustments, he warned.

China’s economy expanded at the slowest pace of 6% in decades in the third quarter quarter, and is poised to slow further as domestic demand remains weak and external uncertainties linger. Observers including Goldman Sachs Group Inc expect policy makers to set the growth target at “around 6%” for next year.

To contact Bloomberg News staff for this story: Lin Zhu in Beijing at lzhu243@bloomberg.net

To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, James Mayger

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With assistance from Bloomberg