China sets GDP target of ‘around 5%’ for 2023

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

Analysts generally expected China to set a GDP target above 5% for 2023. The average forecast for growth is 5.24%, according to CNBC analysis.

China also set a target of 3% for the consumer price index and 5.5% unemployment for people in cities – with the creation of around 12 million new jobs in cities.

The working report called for implementing “prudent monetary policy” in a “targeted” manner.

Li presented the report on Sunday at the opening of the National People’s Congress, part of the “Two Sessions” annual parliamentary meeting. This is his last Congress as Prime Minister.

The work report noted the upcoming change in central government leadership, while setting out eight priorities for economic policy.

Stimulating domestic demand – from consumption and investment – ranked first, followed by improving the industrial system and supporting non-state-owned enterprises, according to the report.

Other priorities included “intensification of efforts to attract and utilize foreign investment”, “prevention and mitigation of” financial risks, stabilization of grain production, continued green development and development of social programs.

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

“We should ensure effective risk prevention and mitigation in leading high-quality real estate companies, help them improve the debt-to-asset ratio, and prevent unregulated expansion of the real estate market to promote the stable development of the real estate sector.” the report said.

A slump in the massive real estate sector has weighed on China’s economic growth in the past year. Beijing cracked down on developers’ high reliance on debt for growth in 2020.

China’s GDP grew by just 3% last year in a rare miss of the national target.

The country had set a target of around 5.5% growth for 2022. But Covid controls, including the two-month shutdown of Shanghai, and the property slump dragged down growth.

This year, the two sessions are also set to formalize government titles for the new prime minister, deputy prime minister and heads of various ministries.

This year’s National People’s Congress ends on 13 March.