BEIJING, Feb. 27 (UPI) -- China lowered its annual growth target to 7 percent in its next five-year plan from 7.5 percent in its earlier one to ensure a sustainable economy.
"We must not any longer sacrifice the environment for the sake of rapid growth and reckless roll-outs, as that would result in unsustainable growth featuring industrial overcapacity and intensive resource consumption," Premier Wen Jiabao announced during a chat with Internet users.
Compared with the 7.5 percent annual growth rate set in the previous five-year plan ended 2010, China's economy actually will grow at an annual rate of about 10 percent, China Daily reported Monday.
However, the newspaper, quoting economists, reported that because of inflation and excessive liquidity, China's growth this year is expected to be about 9 percent and lower next year.
Wen promised to tighten efforts to contain increases in the price of food and other commodities, which stoke inflation.
China's consumer price index jumped 4.9 percent in January from the same month of last year, as food prices soared 10.3 percent because of growing demand and a drought in major grain-growing regions. Food prices account for a third of China's CPI, the main gauge of inflation.
A joint study by Xiamen University and the National University of Singapore says China's CPI will hit 5.4 percent in 2011, 2.07 percentage points more than last year, and ease to 4.55 percent in 2012.
