China declares confidence in economic growth of about 5% in 2023
2023.03.06 03:38
China declares confidence in economic growth of about 5% in 2023
By Ray Johnson
Budrigannews.com – The vice head of the state planner said on Monday that the world’s No. 2 economy is confident of reaching its growth target for 2023 because of rising consumption. This comes after parliament set a modest goal of expanding the country by about 5% this year.
As the annual session of the National People’s Congress began in Beijing on Monday, outgoing Premier Li Keqiang failed to set a more ambitious growth target for China. As a result, domestic stock indexes opened with a subdued tone.
Last year, strict COVID-19 controls, a property market crisis, and a crackdown on private enterprise all contributed to China’s economy having one of its weakest performances in decades, with GDP growing by just 3%.
A deputy head of the National Development and Reform Commission (NDRC), Zhao Chenxin, told a news conference on Monday that the recovery in mobility for people and goods is speeding up as a result of changes in COVID prevention and control policies.
He added that tourism, catering, and retail sales have improved significantly since the Lunar New Year, boosting the consumption sector and getting the economy off to a strong start.
Zhao stated, “China’s economy is steadily improving,” and they are “full of confidence” in achieving the growth target for the economy by 2023.
“The target of about 5% is in line with the current momentum of the economy… and it will help guide all parties to focus on improving the quality and efficiency of economic development,” the statement reads.
(Graphic: The government will also “coordinate development and security and tackle risks related to property, finance, and local government debt in an appropriate manner,” according to Zhao. China’s GDP growth target for 2023 is approximately 5%.
The government’s concerns about a slowing global economy, local government debt, and persistent issues in the property sector were highlighted in this year’s work report, according to analysts, who noted that economic and financial risks featured more prominently.
Nomura analysts pointed out in a note that “on the major tasks for the new year, the government work report spent an entire section on effectively preventing and defusing major economic and financial risks, which was not specifically discussed in the government work report from last year.”
Another deputy head, Li Chunlin, reiterated that China had enjoyed a good harvest, that hog production capacity was abundant, and that energy security was strong. He acknowledged that food and energy costs had increased in other markets and could continue to do so in China as the country continues its exit from zero-COVID policies.
Following China’s urban employment rate falling for the first time in six decades in 2022, steps to improve the country’s employment rate were also prominent.
Li stated, “Last year, we set a goal of 11 million new jobs, and we actually created 12 million… the target for this year is approximately 12 million.”
According to Zhou Hao, an economist at Guotai Junan International, the higher goal for job creation emphasized the significance of consumption in unlocking the potential for long-term growth.
Zhou stated in a note that the increased target “clearly illustrates that the government pays more attention to growth quality.”
