China has set a target 5% growth GDP in 2024 is one of the most modest in decades, but remains difficult to achieve before the slow post-Covid recovery of the world's second-largest economy.
The Asian firm also reported a 7.2% increase to 1.66 trillion yuan ($231.4 billion). Military budgetIt was already the second highest in the world behind the United States.
At the start of the annual session of the National People's Congress (NPC), China's parliament, in Beijing, Premier Li Qiang announced the economic target for this year.
This target is in line with last year's GDP expansion of 5.2%.
“It's not easy to catch,” Li Qiang admitted. “Therefore, we must stay the course of our policy, work hard and mobilize concerted efforts from all parties,” he added.
In an environment Real estate crisisHigh youth unemployment and a global economic slowdown affecting Chinese exports is “an ambitious target,” said Wang Tao, chief China economist at UBS Bank.
The real estate market continues its decline and has not yet bottomed out, reflecting downward pressure on the economy,” the expert added. This will “have a negative impact on local governments' finances and spending, as well as household wealth and consumption. ,” he said.
Last year, China's main political event was devoted, as never before, to the third term of office of President Xi Jinping, in power since 2012. But this year's parliamentary session focused on the difficulties of a second-world economy after three years in prison. And restrictions due to covid.
Investors are demanding concrete action from authorities to revive the economy, but Beijing is reluctant to implement a major fiscal rescue for fear of compromising its fragile public treasury.
L President d China, Xi Jinping.
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In its activity report released on Tuesday, the government pledged to “ensure progress and stability” of the economy by 2024. It also announced a reduction in customs duties on imports of certain technology goods and promised to “open new avenues for foreign trade”. “.
“The key is to stabilize the real estate sector,” said Larry Hu, chief China economist at investment bank Macquarie Group. But he said “more expansionary fiscal policy is needed” to stimulate growth through tax cuts.
Instead, communist officials wanted to strengthen defense and security, increasing military spending by 7.2% amid geopolitical tensions in the region over territorial disputes over Taiwan or the South China Sea.
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