China’s GDP growth target of over 6% is easy to reach – and that’s not a bad thing, analysts say

China’s target of more than 6% growth for 2021 is not very meaningful because it can be easily reached — but that’s not necessarily a bad thing, analysts told CNBC this week. “It almost does the same thing as not having a growth target on there because it’s such an easy target to hit,” said Michael Hirson, Eurasia Group’s practice head for China and Northeast Asia.

Simon Baptist, chief economist at The Economist Intelligence Unit (EIU), echoed the same sentiment. “It will easily be met,” he told CNBC’s “Street Signs Asia” on Thursday. “It’s sort of a target that you have when you don’t really want to have a target.” Chinese Premier Li Keqiang announced last week that the country is aiming for economic expansion of more than 6% this year. He was speaking at the opening ceremony of China’s National People’s Congress.

Addressing reporters on Thursday evening, at the close of the annual parliamentary meeting, Li said China’s target was not low. The 2021 target should match that of 2022 in order to avoid large gyrations, he said. “By setting the GDP growth target at above 6%, we have left possibilities open, which means in actual delivery, there may be even faster growth,” the premier said. The EIU predicts that China’s growth will be around 8.5% this year, more than 2 percentage points higher than the official target.

China’s GDP growth target of over 6% is easy to reach – and that’s not a bad thing, analysts say, CNBC, Mar 12