China Sets 2024 GDP Growth Target at 4.5-5%... Inflation Target at 2%

Fiscal Deficit Target Set at About 4% of GDP

China has set its gross domestic product (GDP) growth target for this year at "4.5% to 5%."

According to Bloomberg News and other sources on March 5, Chinese Premier Li Qiang will announce this target during the government work report at the opening session of the National People's Congress (NPC), held at the Great Hall of the People in Beijing.

The Chinese People's Political Consultative Conference opened on the 4th of last month. Photo by Xinhua News Agency

It is analyzed that the lower end of the growth target has been reduced due to significant downward pressure on the economy. This pressure stems from serious domestic issues such as sluggish domestic demand, a downturn in the real estate sector, and youth unemployment, as well as heightened tensions with the United States over technological and trade hegemony.

Since 2023, China has set a growth target of "around 5%" for the past three years. During this period, the actual growth rates were 5.2%, 5.0%, and 5.0%, respectively, meeting the stated targets.

This year's consumer price index (CPI) growth target has been set at around 2%, the same as last year. China lowered its CPI target to 2% last year—the first time since 2004 that the target was set below 3%—and has maintained that level for this year as well.

The fiscal deficit target is set at around 4% of GDP. China raised the target from 3% to 4% of GDP last year, the first increase since 1994, and has maintained this level. This suggests the government will continue to implement various measures to stimulate domestic demand this year.

The unemployment rate target has been set at 5.5%, and the target for new job creation is 12 million, both unchanged from the previous year.

This year, the increase in the national defense budget is set at 7% compared to the previous year. China increased its defense budget by 7.1% in 2022 and has expanded it by 7.2% for four consecutive years since 2023, marking a fifth consecutive year of increases in the 7% range.

This content was produced with the assistance of AI translation services.