Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

China targets 7% growth



NEW YORK (CNNMoney) -- The Chinese government on Friday issued a target growth rate of 7% for the next five years -- still impressively fast, though a comedown from recent years when growth has topped 11%.

China, the world's fastest-growing economy, is trying to avoid overheating: Inflation there jumped 4.9% in January, driven by a more than 10% increase in food prices. Some also worry about a building boom that has driven up property prices.

The government also forecasted a big rise in household income, which would gain more than 7% during the next five years.

The forecasts were made as part of the Chinese government's "Outlines for the 12th Five-Year Plan on National Economic and Social Development," a document the government submitted to the National People's Congress for approval.

As Western economies have struggled to regain their footing following the financial crisis of 2008, China plowed ahead, and has helped support the rest of the global economy. China now holds more than $1 trillion in U.S. Treasuries.

China recently passed Japan as the world's second-largest economy, though remains a distant second to the United States, at roughly a third of the size.

-- CNN Producer Steven Jiang contributed to this report.  To top of page

Search for Jobs

Index Last Change % Change
Dow 19,216.24 45.82 0.24%
Nasdaq 5,308.89 53.24 1.01%
S&P 500 2,204.71 12.76 0.58%
Treasuries 2.39 -0.00 -0.13%
Data as of 7:19am ET
Company Price Change % Change
Bank of America Corp... 21.84 0.61 2.87%
Chesapeake Energy Co... 7.48 0.25 3.46%
Ford Motor Co 12.44 0.20 1.63%
Freeport-McMoRan Inc... 15.87 0.45 2.92%
Apple Inc 109.11 -0.79 -0.72%
Data as of Dec 5
Sponsors

Sections

Facebook, Twitter, Microsoft and Google's YouTube say they will create a shared database to help them track and remove "violent terrorist imagery or terrorist recruitment videos." More

Billionaires, they're just like us. Except they own an average of nine overseas homes, have 10 vehicles and possess nearly $20 million in fine art, according to a new report. More