BBC News - China cuts growth target to 7.5% in 2012

China's government said it will target 7.5% economic growth this year, in a sign that a rapid pace of growth has become less of a priority.

China has previously targeted 8% growth, yet in recent years has posted higher growth rates

China will also aim for 4% inflation, said Premier Wen Jiabao at the start of an annual meeting of Chinese lawmakers, the National People's Congress.

China has aimed for 8% growth for the last eight years.

A slowdown in the US and Europe has also affected Chinese exports and weighed on growth.

China's gross domestic product (GDP), or annual economic output, often comes in above official targets. Last year, the economy grew by 9.2%. In 2010 gross domestic product grew by 10.4%.

Stability

Chinese leaders have said that economic stability is a priority for the country this year, ahead of its planned change of leadership in the autumn.

"I wish to stress that in setting a slightly lower GDP growth rate, we hope... to guide people in all sectors to focus their work on accelerating the transformation of the pattern of economic development and making economic development more sustainable and efficient," Mr Wen said.

Analysts said a stimulus package introduced after the 2008-2009 global financial crisis contributed to bubbles in the property market and high inflation.

High consumer prices, especially the cost of food has previously caused unrest in China.

Inflation rose by 5.4% in 2011, higher than the government target of 4%.

"China's economy is encountering new problems. There is downward pressure on economic growth. Prices remain high. Regulation of the real estate market is at a crucial stage," Mr Wen said.

Wealth distribution

The Premier also said boosting domestic consumption was "crucial".

"Expanding domestic demand particularly consumer demand which is essential to ensuring China's long-term, steady, and robust economic development is the focus of our economic work this year," Wen said.

Boosting domestic demand is aimed at countering the effects of the Eurozone debt crisis and slowing of the US economy which have led to a drop in demand globally for Chinese exports.

He also spoke of measures to make sure that economic prosperity was shared more evenly.

To that effect, he said the government would boost spending on social services and raise incomes for middle and low-income groups, as well as expand consumer credit.