In the past few months, China’s central government lowered economic growth targets that were exceptionally high for decades. According to the Beijing News, 27 out of 31 provinces missed their growth targets mandated by the central government last year. Over the past few decades, the Chinese government issued high growth standards for each province, most of which were met or exceeded. Now, the government is reconciled to the fact that substantial growth over the entire economy is not feasible or maintainable.
Every province, with the exception of Tibet, cut their economic growth goals this year. Tibet is one of the poorest provinces in China and could benefit from industrial growth. Other provinces, like those in north China, will see a drastic slow down of growth to a normal, modernized level. Growth estimates for the country as a whole are now near 7%.
Now one of the most modernized economies in the world, economists attribute this economic deceleration in China to natural causes. Government officials recognize this trend and are adjusting their predictions accordingly.