A Steady Trajectory
This year, China aims to achieve a GDP growth rate of around 5 percent, create over 12 million new urban jobs, and ensure personal income growth keeps pace with economic growth.
Li Qiang, Premier of the State Council, unveiled the goals in the Report on the Work of the Government, which he delivered at the opening meeting of the Second Session of the 14th National People’s Congress, China’s top legislature, on March 5. The report details the government’s work throughout 2023 and outlines the plan for the country’s economic and social development in 2024. According to the report, work this year will focus on stability and progress.
This year’s targets take into account the current domestic and international conditions, and find alignments between the nation’s needs and its potential.
nd
The GDP growth target is the same as last year, demonstrating stability as the underlying principle of government policies. The Chinese economy showed resilience in 2023, recording a year-onyear expansion of 5.2 percent.
China aims to basically realize modernization by 2035 as part of its overall goal of becoming a great modern socialist country in all respects by 2049. To do this, its per-capita GDP must be on par with that of a midlevel developed country. According to estimates, from now to 2035, China must maintain its economic growth at around 5 percent, and the 5-percent growth is also necessary to ensure the employment target can be met.
Positive factors are increasing this year, while unfavorable factors hindering development are on the wane. For instance, in the first two months last year, China was still struggling to achieve a smooth transition of its COVID-19 response. In addition, risks posed by real estate developer Evergrande Group’s default crisis, local government debt and flaw-ridden small and medium-sized financial institutions are being curbed.
To drive the economy, the government has vowed to introduce policies to promote digital, environmentally friendly, and health-related consumption. It will also make more efforts to attract foreign investment.
However, to accomplish the goals of stability and progress, China needs to fully address its challenges, including employment difficulties caused by the slow recovery of micro, small and medium-sized enterprises and negative impacts brought by political chaos in other regions.