China Targets Approximately 5% GDP Growth for 2024

Amid the opening of the National People's Congress annual meeting, China has announced its economic objectives for the year 2024, aiming for a GDP growth rate of 'around 5%,' as stated in the Government Work Report. This projection builds on the prior year's growth of 5.2%, which aligned with the government's forecast, despite facing obstructions from a weakening real estate sector and diminishing export activity.

Understanding China's Economic Goals

Analysts had anticipated China to set a modest growth target, consistent with prior forecasts. Moreover, expectations suggested a slight increase in the official fiscal deficit, pushing it beyond the 3% threshold. Close attention is being paid to governmental strategies and pronouncements for potential signals that could indicate support for the property sector, as well as other aspects of the economy that might benefit from policy interventions.

2023 Targets and Outcomes

Turning the spotlight to the 2023 benchmarks, China's goals included a 3% cap on the consumer price index and a 5.5% ceiling on urban unemployment rates, backed by the creation of approximately 12 million new urban jobs. Success was achieved last year, with average urban unemployment rates stabilizing at 5.2% and the generation of 12.44 million new roles. Nevertheless, the consumer price index saw only a 0.2% surge, suggesting a tepid demand within the economy.

China, GDP, Economic