2024.03.0507:44:00UTC+00China Maintains Growth Target Of About 5%

Despite the fading favorable base year effects, real estate meltdown and deflationary pressures, China has set an economic growth target of about 5 percent for 2024 that was unchanged from its previous year goal, which is set to force policymakers to focus on stimulus.

In the annual work report, Premier Li Qiang on Tuesday projected the budget deficit at 3 percent of GDP and lifted defence spending by 7.2 percent.

The government targets the urban unemployment rate of around 5.5 percent and intends to generate 12 million jobs.

China aims to bring inflation to 3 percent in 2024, in line with the last year target. However, consumer price inflation remained negative for the fourth straight month in January. Further, the government aims to issue special-purpose bonds for local governments worth CNY 3.9 trillion.

Li said the government will continue with its pro-active fiscal policy and prudent monetary policy.

Driven by the rebound from reopening after the pandemic, China comfortably achieved above target GDP growth of 5.2 percent last year after expanding 3.0 percent in 2022.

The International Monetary Fund forecast China GDP to grow 4.6 percent this year and 4.1 percent in 2025.

The annual work report emphasized on defusing risks in property market and guard against risks from new debt.

The government also intends to take measures to defuse risks in small and medium-sized financial institutions.