(MENAFN) As the annual session of the Chinese Parliament kicks off, attention turns once again to the pressing issue of stimulating the Chinese economy. Both investors and local savers are closely monitoring the proceedings in anticipation of signs that could help the economy overcome the challenges it currently faces, which have resulted in a slowdown in growth momentum. Notably, China's gross domestic product (GDP) for 2023 recorded its lowest growth rate since 1990, standing at 5.2 percent, excluding the period affected by the Covid-19 pandemic.
During the opening of the annual parliamentary meetings, known as the "two sessions," key targets for GDP and other economic indicators were unveiled as part of the "Government Work Report" submitted for deliberation by the national legislature. For the year 2024, China has set a GDP growth target of 5 percent, signaling a cautious approach amidst ongoing economic uncertainties.
Additionally, the Chinese government aims to address employment concerns by targeting an urban unemployment rate of approximately 5.5 percent and aiming to create 12 million new jobs in urban areas. To support economic growth and development initiatives, the government plans to reduce the deficit-to-GDP ratio to 3 percent for the current year, down from a revised 3.8 percent in the previous year.
In a move to finance major projects aligned with national strategies, China intends to issue 1 trillion yuan (USD138.9 billion) worth of long-term special treasury bonds this year. Furthermore, local governments will have access to 3.9 trillion yuan in special purpose bonds, aimed at supporting regional development initiatives.
Addressing inflation concerns, the Chinese government has set a consumer inflation target of 3 percent for the year, underscoring efforts to maintain price stability. Additionally, China pledges to remove restrictions on foreign investment in the manufacturing sector, signaling a commitment to fostering a more open and welcoming investment environment.
Overall, the targets set by the Chinese Parliament reflect a comprehensive strategy aimed at addressing key economic challenges while fostering sustainable growth and development. The unveiling of these targets provides insight into China's economic priorities and policy direction for the coming year.
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