China | Credibility over confidence

Interpreting China’s unambitious growth target

The government has played it safe with the economy—and its own reputation

People cross a street near office towers in the Lujiazui financial district, ahead of the National People's Congress (NPC), in Shanghai, China, February 28, 2023. REUTERS/Aly Song TPX IMAGES OF THE DAY

Mar 5th 2023|HONG KONG

WHEN CHINA’S government sets its economic growth target for the year, it often faces a dilemma. A balance must be struck between inspiring confidence and maintaining credibility. A high target could give courage to entrepreneurs, making fast growth easier to achieve. But ambitious targets can also be missed, denting the government’s reputation. (They can also induce reckless stimulus spending to avert any such embarrassment.)

This article appeared in the China section of the print edition under the headline “Credibility over confidence”