China sets its GDP growth target at 5 percent for 2023
Chinese Premier Li Keqiang released his report on the work of the government for the past year. This is his last government work report, as he will shortly step down from the position of the Chinese premier. Photo: Ju Peng / Xinhua Via Associated Press
On March 3, Chinese Premier Li Keqiang released his report on the work of the government for the fiscal year of 2022. In the report, Li shed light on China’s economy and government tasks in 2023. Most importantly, China’s GDP growth target for 2023 is set at 5 percent.
Premier Li stressed the importance of continued stabilization of the Chinese economy, revitalization of Chinese society, and efforts in coronavirus containment. According to Li, innovative regulation modes developed in the past five years have kept and will keep the Chinese economic development in a reasonable range. Environmental protection, labor market regulation, and reinforcement of “the progress of the largely successful poverty alleviation program” that ended in 2021 remained the emphasis of the government’s tasks in 2023.
China’s economic performance received mixed results in 2022. Some big cities enjoyed a positive growth rate higher than 4 percent, while the growth rate of China as a whole was only around 3 percent, falling short of the growth rate target of 5.5 percent. Compared to the 5.5 percent target of last year, the 5 percent target this year is more moderate. This is largely similar to the earlier prediction of Chinese analysts. The IMF made similar predictions, setting the expectation at 5.2 percent, while in January, the World Bank reduced its expectation of Chinese economic growth from 5.2 percent to 4.3 percent.
China has achieved an economic rebound during the lunar new year in 2023. The rebound is believed to continue for a longer time, although different parties have different expectations of its degree. Photo: Xinhua Press
Earlier this year during the Lunar New Year, the Chinese economy managed to rebound after loosening its strict containment policy against the coronavirus. Once worried about the virus spreading in public settings without government protection, Chinese people are returning to a healthy and normal way of life. What followed is a rise in domestic consumption as well as a general social vitality. The rebound is believed to continue for a longer period.
Chinese media applaud the 5 percent target as “moderate, reasonable, and showing the confidence of China to maintain long-term economic development”. Foreign media and analysts acknowledge the target’s reasonableness as well. Both Chinese and foreign media and analysts realize the potential and uncertainty of China’s economic performance in the longer term.
According to the report of CNGold, a Chinese news firm, recognizing the drawback in 2022 and the imminent challenges in exports, the Chinese leadership tries to achieve a balance between economic confidence and practical planning. CNGold claimed that the 5 percent target marks a more practical approach to regulating the economy. “The Chinese economy surpassing that of the US is a sure thing,” said CNGold. “Despite being meticulous in the whole process, we know that it takes but one or two decades for us to overtake the US, even if our average growth rate is only 4 percent in the following decade.”