The State Council's research office on Thursday said the country's GDP growth target of 4.5 to 5 percent was set as a range after officials considered various uncertainties both in terms of the domestic economy and changes to the external environment.

Office director Shen Danyang, who is responsible for drafting the central government's work report, said it is likely that China's economy would face more unforeseeable factors this year, as the external environment had become even more complex and volatile.

He noted the recent international situation spoke for itself, and setting the growth target within a range allowed for more flexibility for local governments.

"This year, the external environment for China's economic development has become more complex and volatile, as it's likely there will be more unforeseen uncertainties in economic operations than expected," Shen explained in a briefing in Beijing.

"Setting such a range-based target is also intended to provide room for manoeuvre in responding to these uncertainties."

The director stressed the Chinese economy was exceptional in terms of its resilience and vitality, and so the target is achievable so long as all favourable conditions are fully utilised.

He noted that the government was implementing an income enhancement programme for both urban and rural residents, with a series of policies that include boosting earnings for low-income groups as well as improving remuneration and social security systems.

The idea, Shen said, was to encourage more consumption.

The office's deputy director, Chen Changsheng, said there was still room for further interest rate cuts this year, and there was also scope to get creative when it came to policy mix.

He noted there was a need to facilitate an overall rise in price levels and generate a stable recovery in the Producer Price Index, as well as stabilise asset and property prices.


Edited by Tony Sabine