China has announced a GDP growth target of “around 5%” for 2024, signaling a pragmatic approach to sustaining economic development amid global uncertainties. The target, unveiled in the Government Work Report, underscores China’s commitment to steady progress while avoiding risks associated with overly ambitious or conservative economic goals.
Aligning with Long-Term Objectives
As the world’s second-largest economy and the largest developing country, China emphasizes that development remains its top priority. The “around 5%” target balances the need for sustainable growth with the realities of a global economy facing potential slowdowns. By setting a realistic and moderate goal, China aims to maintain economic momentum, prioritize quality over speed, stabilize expectations, and bolster confidence both domestically and internationally.
To achieve the objectives outlined in the 14th Five-Year Plan and to double its GDP by 2035 compared to 2020 levels, China needs an average annual growth rate of at least 4.7% over the next 15 years. The “around 5%” target for 2024 aligns with this long-term vision, ensuring consistent progress towards these ambitious goals.
Addressing Employment and Economic Stability
Economic growth is closely linked to employment. Historically, every 1% increase in China’s GDP has generated 2 to 2.5 million new jobs. With a target of creating over 12 million new urban jobs and maintaining an urban surveyed unemployment rate of around 5.5% in 2024, a GDP growth rate of “around 5%” is essential to meet these labor market objectives.
Navigating Global Challenges and Domestic Priorities
The global economy faces a high probability of slowdown, and China’s approach reflects an understanding of these external challenges. By adopting a pragmatic growth target, China leaves room to address potential risks and uncertainties, ensuring policy sustainability and effectiveness.
China’s economy continues to exhibit resilience and a positive trajectory, with significant potential for deepening reforms and opening up. The country has ample room for macroeconomic policies to take effect, which is expected to consolidate economic recovery momentum and enhance policy efficiency.
Optimism for Achieving the Target
Given the consolidation of economic recovery and increasing policy effectiveness, China’s economy is anticipated to accelerate further in 2024. The target of “around 5%” is considered attainable, reflecting confidence in the nation’s ability to navigate global challenges while sustaining robust economic growth.
Reference(s):
cgtn.com
