Beijing, Mar. 5, (dpa/GNA) – China has set an ambitious growth target of “around 5%” this year, despite the world’s second-largest economy struggling with slowing global demand for its exports, weak consumer spending at home, and a crisis in the property sector.
Premier Li Qiang announced the goal to the nearly 3,000 delegates at the start of the annual rubber-stamp National People’s Congress in Beijing on Tuesday.
“It won’t be easy to achieve this year’s targets,” Li told the crowd in the capital’s Great Hall of the People. But he said 5% growth was achievable if all parts of the country join together and people “work hard.”
This matches the target that was set last year, and which was ultimately slightly exceeded. According to official figures from Beijing, the economy ultimately grew by 5.2% in 2023.
While critics doubt the full reliability of Chinese economic data, the growth target is nevertheless regarded as an important indicator of the government’s economic policy course.
China’s economy is being buffeted by forces at home and abroad, while stocks have been on a downward slide. Furthermore, analysts say 5% growth was easier to realize last year because of rebound effects from the lifting of Covid-19 controls.
According to the government’s draft budget, which was also released on Tuesday, the deficit is expected to be 3% of gross domestic product (GDP). The target for 2022 was also 3%, but this was later raised to 3.8%.
Li also announced that more than 12 million new jobs are to be created in cities this year. As in 2023, the government is also aiming for an unemployment rate of around 5.5%. Inflation is forecast to be around 3%.
Beijing’s military budget will grow by 7.2% this year to 1.67 trillion yuan (around $232 billion). That is the same rate of rise as last year.
The growth in defence spending comes amid tensions with Taiwan and Beijing’s expansive – and disputed – territorial claims in the South China Sea.
The National People’s Congress is scheduled to conclude next Monday, March 11.
GNA