Chinese premier says economic growth target is 5%, on par with last year's rate

Chinese premier says economic growth target for the country is about 5 percent this year, on par with last year's rate.

Chinese Premier Li Qiang has announced that China's economic growth target for this year is around 5 per cent, in line with last year's performance despite forecasts for a slowdown.

Li Qiang, China's premier (Bloomberg)

The ruling Communist Party has said it is prioritizing efforts to encourage consumer spending to help drive the economy. Last year, the economy grew at a 5.2 per cent pace, but that was after a very slow 3 per cent annual growth rate in 2022, when the country was enduring the worst disruptions from the COVID-19 pandemic.

Li emphasized a need to balance security and stability with economic aims, and said the leadership would strive to improve its handling of policies.

"We should communicate policies to the public in a well-targeted way to create a stable, transparent and predictable policy environment," Li said in a speech on government plans before the ceremonial National People's Congress in the Great Hall of the People.

The consumer-led recovery hoped for after the end of anti-virus controls that kept millions of people at home faltered midway through last year, as falling housing prices and worries over jobs left many families either reluctant or unable to spend more. Control over the economy increasingly is concentrated under leader Xi Jinping.