China reduces GDP growth target to 5% – 03/04/2023 – Market

The Chinese government announced this Saturday (4th) and Sunday (5th) in local time, an annual economic growth target of 5%, slightly lower than last year’s target of 5.5%. The announcement took place during the opening of the annual meeting of the country’s parliament, the National People’s Congress.

China’s Gross Domestic Product (GDP) grew by just 3% last year, one of the worst results in nearly five decades, weighed down by three years of Covid-19 restrictions, a housing crisis, a crackdown on private enterprise and weakening demand. for exports from the country.

In the report, Prime Minister Li Keqiang said prioritizing economic stability is essential, and sets a target of creating about 12 million jobs for the year, up from last year’s target of at least 11 million.

The 5% target is lower than expected. Sources had recently told Reuters that a rate of up to 6% could be set. serves to mark out investments in the country, including foreign ones.

Li has set a government budget deficit target of 3.0% of GDP, according to the report, expanding the target from around 2.8% last year.

Expectations are more positive than at the end of last year, when advisors to the regime recommended a target of 4.5%. The main reason for the change was the end of Covid zero policy restrictions in early December.