China warns it may not meet its economic growth goal

As COVID restrictions put a strain on the second largest economy in the world, China has hinted that it may miss its annual economic growth target.

The top policy-making body of the ruling Communist Party, the Politburo, stated on Thursday that it seeks to maintain growth within "a reasonable range." It made no mention of the earlier set official growth target of 5.5 percent.

China is still enforcing its zero-Covid policy, which has resulted in complete or partial lockdowns of major cities. The 25-member Politburo, which is presided over by President Xi Jinping, said in a statement following its quarterly economic meeting that leaders would "strive to achieve the best results possible." It also urged the stronger provinces to work toward achieving their growth objectives.

Analysts said the lack of a GDP mention was notable, though economists had earlier predicted it would be difficult for China to reach its 5.5% target.

"The 5.5% growth target is no longer a must for China," Iris Pang, chief China economist at ING Bank, had told news outlet the Wall Street Journal.

"Beijing requested that provinces which are relatively well-positioned should strive to achieve economic and social targets for this year," Nomura analysts Ting Lu, Jing Wang and Harrington Zhang said in a note.