China has set a GDP target of ‘around 5%’ for 2023

BEIJING – China has set a growth target of “around 5%” in 2023, according to Premier Li Keqiang’s government work report released on Sunday.

Analysts generally expect China to set its GDP target above 5% for 2023. According to CNBC analysis, the average forecast for growth is 5.24%.

China has also set a 3% target for the consumer price index, and a 5.5% unemployment rate for those in cities – creating about 12 million new urban jobs.

The mission statement calls for “prudent monetary policy” to be implemented in a “targeted” way.

Li presented the statement on Sunday at the opening of the National People’s Congress, part of the annual “two-session” parliamentary session. This was his last conference as Prime Minister.

While laying out eight priorities for economic policy, the work report noted an impending change in the leadership of the central government.

Stimulating domestic demand — from consumption and investment — ranked first, followed by improving the industrial system and supporting non-governmental organizations, the report said.

Other priorities include “intensifying efforts to attract and utilize foreign investment,” “preventing and mitigating” financial risks, stabilizing grain production, green development and developing social programs.

In real estate, the jobs report calls for supporting people to buy their first homes and “help solve the housing problems of new urban residents and young people”.

“We must ensure effective risk prevention and mitigation in high-quality, leading real estate companies, help improve debt-to-asset ratios and prevent uncontrolled expansion in the real estate market to promote sustainable growth in the real estate sector.” The report said.

A slump in the massive property sector has weighed on China’s economic growth over the past year. Beijing has cracked down on developers relying heavily on debt for growth in 2020.

China’s GDP rose only 3% last year.

The country was targeting 5.5% growth by 2022. But Covid restrictions, Shanghai’s two-month lockdown and a slump in real estate dragged down growth.

This year, both sessions have been set up Regularization of government titles for new Prime Minister, Deputy Prime Ministers and Heads of various Ministries.