Chinese Premier announces financial method at National People's Congress

(MENAFN) During his address at the annual meeting of the National People's Congress, Chinese Prime Minister Li Qiang outlined the country's economic objectives for the coming year. He revealed a target growth rate of around five percent, signaling a continuation of efforts to transition the nation's development model. Key priorities include addressing excess industrial capacity, mitigating risks in the real estate sector, and curbing wasteful spending by local governments.

This growth target mirrors that of the previous year, but achieving it will necessitate a more robust stimulus from the Chinese government. Notably, the economy remains reliant on government-backed infrastructure investment, which has contributed to a significant accumulation of debt among regional authorities. Last year's economic recovery, hindered by the lingering effects of the Covid-19 pandemic, underscored deep-seated structural issues within China's economy. These include sluggish household consumption and diminishing returns on investment, prompting calls for a fundamental shift in the development approach.

The looming challenges, including a real estate crisis, economic downturn, stock market fluctuations, and mounting local government debt, have intensified pressure on China's leadership to address systemic weaknesses. Li's remarks reflect a recognition of these pressing issues and signal a commitment to steering the country toward a more sustainable and balanced economic trajectory.

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