Chinese Premier Li Qiang will speak at the 54th Annual Meeting of the World Economic Forum in Davos, Switzerland on January 16, 2024.
Dennis Balibos | Reuters
BEIJING – China has set a growth target of “around 5 percent” for 2024, according to a “Government Work Report” released on Tuesday.
Targets for GDP and other economic indicators were published as part of the opening of the annual session of the National People’s Congress.
China’s economy grew 5.2 percent last year, roughly in line with the government’s target of 5 percent. The recovery from the massive pandemic was slower than many expected, while growth also faced drag from declines in real estate and exports.
China plans to target an urban unemployment rate of around 5.5%, create 12 million new urban jobs and increase the consumer price index by around 3%. The 2024 targets were the same as those set for 2023.
In 2023, the National Bureau of Statistics said the country’s average unemployment rate was 5.2 percent in cities and 12.44 million jobs had been created. However, the consumer price index rose by 0.2% amid a decline in demand.
The work report “stressed the need to ensure both high-quality development and greater security,” preventing threats and maintaining social stability, among other tasks.
It 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 coming year are usually discussed by top party leaders in December. Local governments hold their own meetings to set regional development targets, before the National People’s Congress announces targets for the entire country.
In recent years, Beijing has lowered that number in favor of what it calls “high-quality” growth.
The work report states that “internal drivers of growth are being created,” but added that the country is “prepared for all threats and challenges.”
China also set a deficit-to-GDP ratio of 3 percent for the year, down from 3.8 percent at the end of last year.
“We must appropriately increase the intensity of our active fiscal policy and improve its quality and effectiveness,” the work report said.
An IMF report earlier this year said its discussions with Chinese officials indicated they viewed last year’s fiscal policy as proactive.
The budget deficit does not include special bonds, policy bank bonds and local government finance vehicle debt, according to Oxford Economics lead economist Louise Lowe, who last week forecast a 3% to 3.5% deficit.
More than 2,800 delegates participated in the opening ceremony of the annual meeting of the National People’s Congress in Beijing on Tuesday.
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