In the midst of a property crisis, slowing exports, and a decline in population, Beijing has set an economic growth target of 5 percent for 2024, one of its lowest in decades. The announcement was made by Chinese Premier Li Qiang during the National People’s Congress (NPC) meeting on Tuesday.
Li emphasized the importance of stable, transparent, and predictable policy measures to address the challenges faced by China’s $18 trillion economy. The government aims to focus on transforming the growth model through tax reform, tech talent development, boosting domestic consumption, encouraging private investment, and issuing special government bonds worth 1 trillion yuan.
Despite the difficult economic climate, with issues such as a property crisis, slowing exports, geopolitical tensions, population decline, high debt levels, and youth unemployment, the 5 percent growth target remains unchanged from last year. Li stressed the need to be prepared for all risks and challenges while acknowledging the need to address deep-rooted economic problems.
While expectations for a significant stimulus package are low, the government’s focus on maintaining economic stability suggests a gradual deceleration in growth rates. Li’s speech at the NPC was closely watched by investors seeking reassurance amidst record capital outflows from China.
The decision for Premier Li to forego a news conference at the end of the annual session has been viewed as part of President Xi Jinping’s efforts to consolidate power within the Communist Party. Despite the challenges ahead, China remains committed to pursuing sustainable economic growth and addressing longstanding issues to ensure a stable and prosperous future.