Setting the GDP growth target at around 5.5 percent this year is crucial for China's policymakers to better anchor market expectations as the Chinese economy faces downward pressure, said Xu Gao, chief economist at Bank of China International.

Xu spoke with China Daily ahead of the annual gathering of the country's top lawmakers and political advisors this week. Attention has been focused on how China will set this year's growth target and draft its economic policies to shore up growth.

Infrastructure investment will be a key growth driver and policymakers should also take measures to substantially increase household income to boost domestic consumption, Xu said.