Beijing has set the target at its lowest in decades amid a property crisis, sluggish exports and a shrinking population.
China has set its economic growth target for 2024 at 5 percent, well short of the double-digit growth that has powered the world’s second-largest economy for decades.
China’s rubber-stamp National People’s Congress (NPC) officially unveiled the target on Tuesday as its $18 trillion economy faces serious headwinds.
“We need to deliver policies to the public in a well-targeted way to create a stable, transparent and predictable policy environment,” Chinese Premier Li Qiang said as he presented his first work report outlining policy goals for this year.
Li said Beijing will continue to “change the model of growth,” including through tax reforms, promoting talent in technology, boosting domestic consumption, removing barriers to private investment, and investing 1 trillion yuan ($1.1 trillion) in special government bonds. 139 billion) including issuance.
“We must not ignore worst-case scenarios and prepare for all risks and challenges,” Lee said.
Lee said the government aims to create 12 million new urban jobs and target an unemployment rate of 5.5 percent.
Li also said China’s military budget would increase 7.2 percent to 1.66 trillion yuan ($231.4 billion).
China’s economic roadmap, which matches last year’s target, comes as the Chinese economy grapples with a number of challenges, including a property crisis, sluggish exports, geopolitical tensions with the United States, a declining population, high debt and record debt. including youth unemployment.
China’s economy officially grew by 5.2 percent in 2023, its weakest performance in decades without the COVID-19 pandemic.
The “around 5 percent” growth target shows that China has moved away from pursuing a fixed number with other policy priorities, such as technological competition with the United States and security. [gaining importance]Gary Ng, an economist at Natixis in Hong Kong, told Al Jazeera.
“It’s hard to expect any bazooka-type stimulus because the government just wants stability in the economy, meaning the growth rate will likely slow down.”
In his speech, Lee acknowledged “many challenges” facing the economy, including difficult external conditions and “accumulation and domestic problems”.
The annual meeting is being watched closely by investors for announcements to boost confidence in the economy.
International investors are pulling out of China at record rates, with $68.7 billion of corporate and domestic capital leaving the country last year.
Analysts have expected faster moves to boost the economy due to Beijing’s broad-based aversion to social spending.
Lee’s speech on Tuesday came as officials announced that the prime minister would not hold a news conference at the end of the annual legislative session for the first time since 1993.
The move is seen as a further example of Chinese President Xi Jinping’s efforts to wrest control into the hands of the ruling Communist Party.