With a slowdown in the Chinese economy widely predicted, many analysts were expecting a lower growth rate target for 2024. However, Premier Li Qiang recently stated that they are targeting a 5% rate, similar to last year when the nation achieved growth of 5.2%.
China targets 5% growth
Among the main targets of the country’s ruling Communist Party is boosting consumer spending as a way of driving the economy forward. 2023’s 5.2% growth had been an improvement on the meagre 3% achieved in 2022 as China continued to feel the effects of the COVID-19 pandemic.
Li has spoken about having to find a way to balance areas such as stability and security with their financial target. He said that they need “to create a stable, transparent and predictable policy environment” by communicating their policies more effectively.
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These details were revealed as part of the annual National People’s Congress held at the Great Hall of the People in Tiananmen Square, where it was also stated that they plan to contain the country’s fiscal budget deficit for this year to 3%. This meeting is where policy decisions are rubber-stamped by the authorities.
These figures are part of the transformation that Chinese politicians want to implement in their current development model. Among the key points are plans to lower industrial overcapacity levels and reduce local government spending. Another point concerns defusing the potential risks in the property market. Dropping house prices and job market worries are among the key concerns that have prevented Chinese consumers from spending money freely this year.
