The 2024 GDP target has been set at around 5%, despite economic challenges at home and worldwide
Chinese Premier Li Qiang on Tuesday unveiled the country’s economic development program for 2024, promising steps to “transform” the national growth model and eliminate risks brought about by a recent slew of bankruptcies in the property sector.
In his speech to the annual meeting of the National People’s Congress in Beijing, Li said the country’s gross domestic product (GDP) target for this year would be set at “around 5%.” Li noted that the government would also work on lowering urban unemployment to 5.5% and plans to create 12 million new urban jobs and set the consumer inflation target at 3%.
The 2024 targets are similar to those set for last year, but some economists view this year’s goals as rather bold, given the country is still struggling with deflation, debt, and a crippling real estate crisis.
“Compared with last year, a growth target of around 5% is still relatively ambitious, especially considering China’s tepid post-Covid recovery, property sector challenges, recurrent deflation, and dampened business and consumer confidence,” Neil Thomas and Jing Qian from the Centre for China Analysis told South China Morning Post.
Li acknowledged the economic headwinds the country is facing, saying that the post-pandemic recovery has indeed been “difficult” and that “external factors have negatively affected our country’s development.” However, he also emphasized that major national industries have made progress despite challenges. For instance, Chinese car manufacturing now accounts for 60% of the global market, he said.
In order to reach this year’s targets, Li said that the government will need to take a “proactive” fiscal stance and enact “prudent” monetary policy, including through boosting employment and incomes and defusing risks caused by existing debts.
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