Growth rate slows, structural reform predicted

Chinese Premier Li Keqiang delivers a government work report on the opening day of the third session of the 12th National People's Congress in Beijing, March 5, 2014. [Photo/china.com.cn]

The report also emphasizes a proactive fiscal policy and prudent monetary policy.

It targets growth of a broad money supply, or M2, at 12 percent compared with real growth of 14.7 percent in 2014, and the fiscal deficit to increase to 2.3 percent of GDP up by 0.2 percentage point from last year's fiscal budget plan.

Considering the lower growth target and slowing of the CPI, M2 could be eased further, said Yin. Proactive finance policies are necessary, he added.

The 11-day NPC meeting is expected to confirm an easing bias for macro policies, as foretold by December's Central Economic Work Conference, and more monetary and fiscal fine-tuning will be seen in the coming months to stabilize growth, economists said.

The People's Bank of China announced a second interest rate cut in less than four months on Feb 28, down 25 basis points for benchmark interest rates.

The central bank also cut the reserve requirement ratio in November to increase market liquidity.

The trimming of all macroeconomic targets in 2015 reflects the Chinese government's awareness of the ongoing slowdown and its resolve to restructure the economy, said investment bank Nomura in a note on Thursday.