China has revealed how it views its long-term economic trajectory after three years of pandemic-era distortions. The key message: Beijing is willing to stomach a lower level of economic growth than previously accustomed, and the rest of the world has to too.
China’s economic growth target of “around 5%” for 2024, unveiled at the Communist Party’s annual set piece National People’s Congress today, is nominally the same level as last year. But it still raises the bar given the low base of 2022, when pandemic controls curtailed economic activity.
That raises questions over how it can be achieved. As expected, Premier Li Qiang’s government work report only signalled incremental growth-boosting measures, and not the “bazooka-style” stimulus some economists see as necessary to navigate a real estate crisis and deflationary pressures, and to support confidence in a slowing economy.
“It is not easy for us to realise these targets,” Li acknowledged in his address. “We need policy support and joint efforts from all fronts.”
