China sets 2024 GDP growth target at around 5%

Mar 06, 2024, 10:00 am

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Chinese Premier Le Qiang, who has proposed China’s economic growth target at around 5 percent this year, is presenting a report on government operations at the second meeting of the 14th National People’s Congress, which opened on Tuesday./ Source: Xinhua News Agency

Beijing correspondent Hong Soon-do

As expected, China has proposed its 2024 economic growth target at around 5 percent, the same as last year. The goal, however, seems to be difficult to achieve considering the current economic situation, such as deflation for four consecutive months, and sluggish domestic demand.

The Chinese Premier announced the growth target during the second meeting of the 14th National People’s Congress held in Beijing on Tuesday, Xinhua News Agency and other media outlets reported. The 5-percent growth target clearly tells the difficult situation facing the Chinese economy, as it was set at the lowest in 33 years except for 4.5-percent target in 1991.

Nevertheless, China seems to be confident in achieving its goal. Li emphasized that favorable conditions still outweigh unfavorable factors, saying, “There is no change in the basic trend of economic improvement.” Recalling that the fiscal deficit target set at less than 3 percent of this year’s GDP is also sufficiently achievable, there seems to be no doubt that China is confident in its 5-percent growth.

However, many foreign media outlets including Bloomberg News and economic analysts have very different outlooks. Many of them expect China’s growth above the mid-4 percent rage to be difficult. There are more than one reason. Above all, it is highly likely that the real estate market and local government’s debt’s problems will continue to hamper the market. As the situation at the beginning of the year suggests, it should be mentioned that deflation and sluggish domestic demand will be difficult to overcome for a considerable period of time to come.

The meeting, which will last for seven days until Monday, is expected to be completely unexpected one in that it virtually abolished the Premier’s press conference on the closing day, which has been customary for the past 33 years. It should be said that this is even more so if we add the fact that some of the originally expected high-ranking government officials will not be appointed. As a result, the appointment of Liu Jianchao, the head of the party’s Central Foreign Liaison Department, as the foreign minister may not come true this time.

The second session of the 14th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) held on Monday, a day before the opening of the conference, is similar. This is certainly the case considering that Zhang Xiaoming was removed from Vice Secretary-General position in the political consultative conference, only two days before the opening of the conference. This is why the double conference is drawing more attention than ever.

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