China’s GDP to Grow At Least 6.5% in 2016

China’s GDP will grow by 6.5-7 percent this year and will see an annual increase of no less than 6.5 percent through 2020, the government announced in a Saturday report.

BEIJING (Sputnik) – Budget deficit in 2016 will amount to $334 billion, or 3 percent of the GDP, the government said.

"GDP growth in 2016 is expected at the level of 6.5-7 percent," Premier Li Keqiang said in his report delivered at a session of the National People’s Congress (NPC), adding that "GDP growth in the 13th five-year period (2016-2020) is expected to be 6.5 percent or higher."

"This year the government budget deficit will amount to 2.18 trillion yuan, which is 560 billion yuan more than last year. The ration of the budget deficit to the GDP will increase to 3 percent, which is 0.6 percent more than in 2015," the draft budget document says.

China's economy grew 6.9 percent in 2015, down from 7.3 percent in 2014, amounting to the lowest annual GDP increase in 25 years.

The economic slowdown prompted the Chinese authorities to perform certain economic reforms, including those on currency, stock market and state-owned enterprise.

China's currency, the yuan, has lost more than 1.5 percent against the US dollar since the start of 2016.

According to Li Keqiang, China will continue its proactive fiscal policy in 2016 and will maintain a balanced yuan rate.

Direct foreign investments in China's non-financial spheres are expected to reach about $128 billion in 2016, according to the Chinese government.

The government also plans to create over 10 million jobs in Chinese cities in 2016 while city unemployment is expected to stand at 4.5 percent this year, Li Keqiang said in his report at the NPC.

The annual session of China's state legislature, the National People's Congress (NPC), started in Beijing on Saturday and will last until March 16.