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 17,706.05 213.12 1.22%
Nasdaq 4,861.06 95.27 2.00%
S&P 500 2,076.06 28.02 1.37%
Treasuries 1.86 0.02 1.14%
Data as of 5:48am ET
Company Price Change % Change
Bank of America Corp... 14.68 0.21 1.45%
Freeport-McMoRan Inc... 11.11 -0.27 -2.37%
Chesapeake Energy Co... 4.05 0.38 10.35%
Apple Inc 97.90 1.47 1.52%
Microsoft Corp 51.59 1.56 3.12%
Data as of May 24
Sponsors

Sections

UCLA and Under Armour reportedly signed a record $280 million deal to outfit teams, which will last for 15 years. More

Coca-Cola announced it had suspended production of Coke in Venezuela and other sugar-sweetened beverages due to a lack of raw sugar. More

A federal sting caught a Romanian man trying to sell weapons to cocaine-smuggling FARC terrorists in Colombia. But during his New York trial he claimed he was actually trying to help the CIA expose an international arms deal. More