China Fixes 2024 Growth Target For Economy At 5 Per Cent, Plans To Create 12 Million Jobs

On the latest challenges for the economy, Li said that a decrease in external demand along with insufficient domestic demand has led to the emergence of cyclical and structural issues in the economy

China fixed a target of 5 per cent growth for its economy in 2024, with the aim to create 12 million jobs, an official report by the Chinese Premier revealed. The work report presented by Li Qiang revealed that the country expects to generate over 12 million employment opportunities in urban areas and maintain the surveyed urban unemployment rate near 5.5 per cent in the year. 

The Premier submitted his report in the opening session of the Chinese parliament, the National People’s Congress (NPC), reported PTI. The annual session of the NPC lasted for a week and saw more than 2,000 delegates from across the country in attendance along with the Chinese President Xi Jinping. The leaders convened in the session to discuss and legislate on crucial measures needed to strengthen the growth of the domestic economy. 

Sharing his report, Li noted, “A proactive fiscal policy and a prudent monetary policy will be continued, with the ratio of deficit to gross domestic product (GDP) set at 3 per cent and the government deficit to rise by 180 billion yuan ($26 billion) from the 2023 budget figure.”

Notably, the Chinese economy has recently been struggling with economic slowdown and dampening business sentiment of late. In the aftermath of COVID-19 shutdowns, the economy has been unable to recover its growth momentum. Last year, China reported a GDP growth rate of 5.2 per cent, beating the official target of about 5 per cent, as experts expressed more concerns regarding the extended slump in the real estate market and weak progress in the private sector. Earlier in January, the National Bureau of Statistics (NBS) stated that the unemployment rate for the 16 to 24 age group touched 14.9 per cent in December. 

Regarding a slowdown in the Chinese economy, Li stated, “We secured a smooth transition in epidemic response following a major, decisive victory in the fight against Covid-19. Overall economic recovery and growth were boosted. China’s gross domestic product (GDP) surpassed 126 trillion yuan (about $18 trillion) an increase of 5.2 per cent, ranking China among the fastest-growing major economies in the world. A total of 12.44 million urban jobs were added, and the average surveyed urban unemployment rate stood at 5.2 per cent. Looking back at 2023, we can see that as we faced an array of interwoven difficulties and challenges, China’s economy grew in a wave-like fashion amid twists and turns. Indeed, our achievements did not come easily.”

The Premier further said that factors such as geopolitical conflicts, an increase in protectionism and unilateralism, and the external environment impacted the development of the economy. Li elaborated on the latest challenges for the economy and said that a decrease in external demand along with insufficient domestic demand has led to the emergence of cyclical and structural issues in the economy.

Referring to the existing crisis in the real estate sector after some giants like Evergrande collapsed in the face of a debt problem, Li noted, “Risks and potential dangers in real estate, local government debt, and small and medium financial institutions were acute in some areas.”

At the same time, he expressed gratitude to the President and said, “All this demonstrates that under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the Chinese people have the courage, vision, and strength to meet any challenge and overcome any obstacle. There is no doubt that in pursuing development, China will continue to surge ahead, cleave mighty waves, and advance toward a great future.”