Chinese Premier Li Qiang speaks during the 54th annual meeting of the World Economic Forum in Davos, Switzerland, January 16, 2024.
Denis Balibouse | Reuters
BEIJING – China has set a growth target of “about 5%” for 2024, according to the “Government Work Report” released on Tuesday.
The targets for GDP and other economic indicators were released during the opening of the annual meeting of the National People’s Congress.
China’s economy grew 5.2% last year, meeting the official target of about 5%. The overall recovery from the pandemic has been slower than many expected, while growth has also faced headwinds from the collapse of the real estate sector and exports.
The target for this year largely matches expectations as economists also expected the government to modestly increase the official fiscal deficit above 3%. Investors will also watch the jobs report and government comments for any clues about policy support for real estate and other sectors of the economy.
China plans to target an urban unemployment rate of around 5.5%, the creation of 12 million new urban jobs, and an increase in the consumer price index of around 3%. The 2024 goals were the same as those set for 2023.
In 2023, the Office for National Statistics said the country had an average unemployment rate of 5.2% in cities and created 12.44 million jobs. However, the consumer price index rose 0.2% amid sluggish demand.
The working report emphasizes the need to “ensure both high-quality development and increased safety”, preventing risks and maintaining social stability, among other tasks.
He called for the implementation of the decisions and plans of the Central Committee of the Communist Party of China.
China’s economic policies for the year ahead are typically discussed by top party leaders in December. Local governments hold their own meetings to set regional growth targets, before the National People’s Congress announces the target for the entire country.
In recent years, Beijing has downplayed the figure in favor of what it calls “high-quality” growth.
The working report states that “internal engines of development are being created,” but adds that the country should be “well prepared for all risks and challenges.”
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