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Wang Tao, UBS economist

Wang Tao, UBS economist

Setting 2015's GDP growth target at around 7% is an important signal, designed to better manage expectations. On the one hand, a lower target means that the government is tolerating slower growth. On the other hand, the target's still high level signals the government's intent to provide policy support as needed to prevent an excessive deceleration of growth. But a 7% GDP growth will be difficult to achieve this year amid a structural property downshift, notwithstanding further expected macro policy easing.