With the opening of the the annual full session of the National People’s Congress (NPC) (China’s top legislature) today, Primer Wen delivered the annual report in his on the work of his cabinet in 2012 and also set the targets for year of 2013. The key goals include:
To achieve the annual GDP growth rate of 7.5% (7.8% y-o-y growth rate was achieved in 2012);
To control the CPI growth as around 3.5%;
To create over 9 million new jobs in the urban areas;
To control the unemployment rate as below 4.6%;
To ensure the actual income growth rate of people as more than 7.5% which is in line with the GDP target.
Last year in the 18th Party’s Congress, President Hu the first time in history pledged to double the average income of 2010 by 2020. It is good news as the government and the party pay attention to the income growth of the people and identify the possible middle income trap that could lead to disastrous future for China. The term middle income trap refers to the phenomenon that the strategies taken by a country to grow from low income to middle income can not support the economy to upgrade into a high income one. Now with the clear target set for the income growth for people to be in line with the GDP growth rate in 2013, it is highly anticipated that the target would become reality soon making people a better life and avoid the middle income trap that trouble many raising economies a lot such as Malaysia.