According to an official work report released by Reuters on Tuesday ( Mar 5 ), China has set an economic growth target for 2024 of roughly 5 %, which is in line with analysts ‘ expectations.
China intends to run a budget deficit of 3 % of its production, down from the revised figure of 3.8 % last year, according to the report. Importantly, it intends to issue special treasury bonds worth 1 trillion yuan ($ 139 billion ), which are typically not included in the budget.
Premier Li Qiang’s maiden work report is expected to be presented to the National People’s Congress ( NPC ), China’s rubber-stamp parliament, at its annual meeting in Beijing this week.
The president’s main annual economic and social development objectives are set out in the document.
According to the report, the specific bond issuance limit for regional institutions was set at 3.9 trillion yuan, compared to 3.8 trillion yuan in 2023.
China also wants to create over 12 million urban jobs this year, keeping the unemployment rate at about 5.5 %, while maintaining the inflation target of 3 %.
China’s economy increased by 5.2 % in 2023, but it still relies heavily on state-led, credit-driven funding, which raises questions about whether it will be able to maintain that growth over the long term.
According to analysts, the favourable center result from a COVID-hit 2022 has faded, making this year’s target harder to achieve than it did last year.