SINGAPORE (Reuters) – China has set its 2024 growth target for the economy at about 5%, similar to last year’s, according to an official work report seen by Reuters on Tuesday.
The National People’s Congress (NPC), kicked off its annual session on Tuesday, with plans to contain the 2024 fiscal budget deficit at 3% of gross domestic product (GDP).
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ROCKY FAN, ECONOMIST AT GUOLIAN SECURITIES, SHANGHAI
“I think this target is in line with expectations. Of course, there are still challenges to reach this goal, as there’s no more low-base effect, and there’s still a big drag from the property sector.
Personally, I’m optimistic, as China is similar to countries other than Japan that can walk out of a cyclical recession. China is strong in capital expenditure, and macro data has started to improve in the first quarter, including total social financing, PMI, Spring Festival spending.
And since the second half of last year, corporate profit has started to improve and capex spending has been strong.”
HU YUEXIAO, CHIEF ECONOMIST AT SHANGHAI SECURITIES, SHANGHAI
“This growth target reflects policy makers’ intention to stabilise the economy, and is attainable.
China’s policy focus has shifted to structural reforms. The pursuit of speed has given way to the change in the model of growth. The shift is reflected in new terms such as ‘new productive forces’.”
(Reporting by Samuel Shen in Shanghai and Asia markets team. Editing by Gerry Doyle)
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