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2015 is the last year of the "12th Five Year Plan". The economic policies and economic growth of 2015 have received much attention. In terms of the economic situation for next year, the meeting of the Political Bureau of the Communist Party of China Central Committee (the CPC Politburo) held on Dec. 5 has released very clear signals.

According to Liu Yuanchun, Executive Director of National Academy of Development and Strategy of Renmin University, the meeting put much emphasis on economic reform, economic restructuring, and cultivating new economic growth points, which will be the key tasks for 2015.

Liu Yuanchun explained that compared with the multiple targets of previous years, this year's CPC Politburo meeting focused on "reform" and "cultivating new economic growth points". The Chinese economy will soon enter a crucial stage of its "new normal".

Liu Said: "The economic slowdown is a new normal, which will create room for economic restructuring, and for setting up new growth points during this restructuring."

Wang Tao, Chief Economist of UBS China, thinks that the policies of 2015 will still focus on ensuring economic growth, preventing risks, adjusting the economic structure, and promoting reform. The decision makers will probably maintain the "active" fiscal policy and a "prudent" or "neutral" monetary policy.

During the 2014 two sessions (the National People's Congress and the Chinese Political Consultative Conference), the government work report delivered by Premier Li Keqiang set the economic growth rate for 2014 at about 7.5 percent. According to several forecasts made by various institutions, the economic growth rate of 2015 may be even lower, about 7.0 percent to 7.3 percent.

According to the "Economy of China: Analysis and Forecast 2014"” released by the Chinese Academy of Social Sciences, in 2015, China's GDP growth rate will be about 7 percent.

According to the "Economy and Finance Forecast 2015" released by Bank of China on Dec. 2, China's GDP growth rate is expected to be 7.2 percent and the CPI will grow at about 2.4 percent in 2015. In other words, the economic fundamentals will be lower growth and low inflation. 

The article is edited and translated from《明年經濟增長目標：7.5%或下調》, source: The Beijing News, author: Li Dandan and Chu Xinyan.

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