China’s economy is expected to grow by more than 5% this year.
Vcg China Visual Group | Getty Images
BEIJING – China has set a growth target of “around 5%” for 2023, according to Premier Li Keqiang’s government work report released on Sunday.
Analysts generally expect China to set a GDP target above 5% for 2023. The average forecast for growth is 5.24%, according to CNBC analysis.
China also set a target of 3% for the consumer price index, and a 5.5% unemployment rate for people in cities – with the creation of around 12 million new urban jobs.
The work report calls for implementing “prudent monetary policy” in a “targeted” manner.
Li presented the report on Sunday at the opening of the National People’s Congress, as part of the “Two Sessions” parliamentary meeting. This was his last congress as prime minister.
The work report notes the changes in the leadership of the central government, while defining eight priorities for economic policy.
Spurring domestic demand – from consumption and investment – ranks first, followed by Improving the industrial system and supporting non-state enterprises, according to the report.
Other priorities include “strengthening efforts to attract and utilize foreign investment,” “preventing and defusing” financial risks, stabilizing grain production, continuing green development and developing social programs.
real estate
In real estate, the job report encourages first-time home buyers and “helps solve the housing problems of new townspeople and young people.”
“We must ensure effective risk prevention and mitigation in high-quality real estate companies, help improve the debt-to-asset ratio, and prevent unregulated expansion in the real estate market to promote the stable development of the real estate sector,” he said. the report said.
A slump in the massive property sector has weighed on China’s economic growth in recent years. Beijing has eliminated the developer’s high reliance on debt for growth by 2020.
China’s GDP grew by only 3% last year as it failed to meet national targets.
The country has set a target of 5.5% growth for 2022. But Covid is controlling, including Shanghai’s two-month lockdown, and the real estate slump is dragging down growth.
This year, Two Sessions is also set to inaugurate government titles for the prime minister, deputy prime minister and heads of different ministries.
This year’s National People’s Congress will end on March 13.