China on Tuesday will set a gross domestic product growth target of “around 5%” for 2024, matching last year’s target, according to an official document shown to Nikkei by a government source.
Premier Li Qiang is due to announce the target in his work report speech to the National People’s Congress (NPC), China’s annual legislative meeting in Beijing. China’s economy grew 5.2% on the year in 2023, but the goal of roughly 5% may be more ambitious this time, given the economy is still struggling to find its post-pandemic footing.
The economy has been weighed down by a depressed property sector and restrained manufacturing activity. Last year’s performance was partly thanks to government stimulus measures as well as a low base. The World Bank in January projected that the Chinese economy would grow 4.5% in 2024 amid weaker domestic demand and mounting geopolitical tensions.
The premier’s work report to the NPC is expected to detail other growth objectives, policies and diplomatic positions, including Beijing’s stance on Taiwan. The speech comes a day after an announcement that the premier will not hold a news conference after the NPC, breaking with decades of tradition.
In a top leadership meeting last week to review the draft of Li’s speech, the ruling party’s Politburo, chaired by President Xi Jinping, called for sustaining economic momentum by “moderately intensifying” proactive fiscal policy while implementing targeted monetary policy.
So far this year, property sales in key Chinese cities have remained sluggish while factory activity has contracted for five straight months. Deflationary pressure has intensified, with prices of consumer goods slipping by the biggest margin in 14 years. – NikkeiAsia
