5% economic growth target is ‘achievable’

CHINA has set an economic growth target of around 5 percent for 2024.

In setting the target, the need to boost employment and incomes and prevent and defuse risks have been taken into account, and the growth rate is well aligned with the objectives of the 14th Five-Year Plan, according to a government work report.

The target also takes account of the potential for growth and conditions supporting growth, it said.

Over the past decades, China’s economy has overcome odds such as the COVID-19 pandemic, natural disasters and the global financial crisis, and has managed to maintain consistent growth while invigorating the global economy.

Since 2014, the Chinese economy has reached one milestone after another, with the country’s GDP passing the 60-trillion-yuan, 80trillion-yuan, and 100-trillion-yuan marks in 2014, 2017 and 2020. More recently, it went on to pass the 110trillion-yuan and 120-trillion-yuan marks despite the impacts of the COVID-19 pandemic.

In 2023, China’s economy grew by 5.2 percent, with the corresponding economic growth in volume exceeding 6 trillion yuan (US$845.33 billion) in comparable prices. Such an increase in volume would take a 10 percent annual GDP growth rate to achieve 10 years ago.

For this year, therefore, analysts believe that a growth rate of around 5 percent is a goal achievable through hard work, and it shows the enterprising and vigorous state of the Chinese government.

Setting such a target would help boost confidence, guide public expectations, and further build consensus on development, said Zhou Li’an, a professor at Peking University.

Optimism is shown among foreign-funded firms as they cast their vote of confidence for the Chinese market by increasing their investment or operations in the country.

For example, the number of stores operated by fast food chain KFC has surpassed 10,000 across China. In January, Airbus opened a service center dedicated to the entire lifecycle of an aircraft in Chengdu, which is the first such center outside Europe for the company.

A poll by the European Chamber of Commerce in China revealed that about 59 percent of surveyed companies view China as one of their top three investment destinations.

(Xinhua)