Beijing sets a growth target for China of around 5% in 2024

MADRID, 5 Mar. (EUROPA PRESS) -

The Government of China expects to achieve an expansion of the gross domestic product (GDP) "of around 5%" in 2024, as announced by the country's Prime Minister, Li Qiang, during the inauguration this Tuesday of the National People's Congress.

In this way, Beijing maintains a GDP growth target similar to that set for last year, when the Chinese economy finally registered an expansion of 5.2%, accelerating compared to the 3% growth in 2022.

However, the Chinese Government's goal for 2024 is more ambitious than the expectations of the International Monetary Fund (IMF), which anticipates an expansion of China's GDP of 4.6% in 2024.

On the other hand, the Chinese prime minister stated that the country hopes to create more than 12 million jobs in urban areas during the year and maintain the urban unemployment rate at around 5.5%.

Likewise, China will maintain a proactive fiscal policy and a prudent monetary policy, with the ratio between deficit and gross domestic product (GDP) set at 3%.

China will issue special purpose bonds amounting to 3.9 trillion yuan (almost half a trillion euros) for local governments, in addition to carrying out the issuance of long-term special bonds in order to implement important national strategies and develop security capabilities in key areas, starting with the issuance of 1 trillion yuan (€127.97 billion) of such bonds this year.

"Compared to last year, a growth target of around 5% remains relatively ambitious, especially considering China's tepid post-Covid recovery, real estate sector challenges, recurring deflation and lower business confidence and consumers," according to Neil Thomas and Jing Qian of the China Analysis Center, in statements to the newspaper 'South China Morning Post'.