Beijing will announce economic growth targets for 2024 at National People’s Congress

The spring session of the National People’s Congress (NPC), the primary legislative body of the PRC, has commenced in Beijing. It is anticipated that the NPC will announce economic growth targets and objectives for the year, as well as measures to support the economy, which is currently facing challenging times.

The NPC session will commence on Tuesday, March 5, as usual, with a report from the Prime Minister of the State Council. This will be Li Qiang’s first performance in his new position.

It is expected that the same goal for economic growth as last year, around 5%, will be announced at the NPC session. However, Bloomberg and experts emphasize that it will be more challenging to achieve this time. The session participants are expected to focus on approving an economic stimulus program with specific figures and new economic drivers. Beijing appears to have finally decided to move away from the previous development model, which was based on the real estate market and the construction industry. This decision was made because the previous model cannot effectively address a prolonged crisis.

Furthermore, the deputies will review the government’s proposal to boost consumption among the Chinese population, which is crucial for achieving significant economic growth.
According to Western economists, such as those at JPMorgan Chase & Co., China’s economic policy will continue to focus on growth. However, as was the case last year, the authorities will likely attempt to avoid implementing a multi-billion dollar support program. However, achieving this will be more challenging than in the past. The specific figures will be included in the Minister of Finance’s report, which will be presented on Tuesday, March 5th.
For years, Beijing has aimed to limit the budget deficit to 3% of GDP. However, economists have recently suggested that the government should be more flexible with this target. As a result, the fiscal deficit to GDP ratio was increased to 3.8% last year. This year, despite the existing large debts and the crisis in the construction industry of the Middle Kingdom, which has led to a sharp decrease in income, experts expect the budget deficit to be set at 3.3%. This is in line with recent calls from senior officials for greater fiscal discipline. However, it will be extremely difficult for individual provincial authorities to meet this target.
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Beijing will announce economic growth targets for 2024 at National People’s Congress

The spring session of the National People’s Congress (NPC), the primary legislative body of the PRC, has commenced in Beijing. It is anticipated that…