BEIJING: China has set an economic growth target for 2024 of around 5 per cent, similar to last year’s goal and in line with analysts’ expectations, according to an official work report seen by Reuters on Tuesday (Mar 5).
To meet the goal, China plans to run a budget deficit of 3 per cent of economic output, down from a revised 3.8 per cent last year, the report said. But crucially, it plans to issue 1 trillion yuan (US$139 billion) in special treasury bonds, which are typically not included in the budget.
The National People’s Congress (NPC), China’s parliament, is due to hear Premier Li Qiang’s maiden work report at its annual meeting in Beijing this week.
The report sets out the government’s key economic and social development goals each year.
The special bond issuance quota for local governments was set at 3.9 trillion yuan, versus 3.8 trillion yuan in 2023, the report said.
China also set the inflation target at 3 per cent and aims to create over 12 million urban jobs this year, keeping the jobless rate at around 5.5 per cent.
China’s economy expanded 5.2Â per cent in 2023, but it remains heavily reliant on credit-driven, state-led investment, raising concerns over whether it can sustain that pace in the longer term.
This year’s target will be harder to reach than last year’s because the favourable base effect from a COVID-hit 2022 has faded, analysts say.
Source: CNA
