China 2023 GDP: why Beijing set a moderate target, and what it signifies for economic growth
- After falling far short of its GDP target last year, Beijing is being a bit more reserved in 2023, and analysts say this reflects the need to cultivate better-quality growth long-term
- ‘Domestic and international challenges’ are forcing a number of reforms, and economic stability remains of paramount importance
02:52
China's 'two sessions': Premier Li Keqiang emphasises achievements, economy in final work report
In gauging how China’s economy will fare this year, Beijing has set a relatively moderate growth target that will allow for more leeway to focus on resolving long-term challenges facing the world’s second-largest economy, according to analysts.
The world’s second-largest economy aims to boost its gross domestic product (GDP) by around 5 per cent this year, outgoing Premier Li Keqiang told about 3,000 parliamentary deputies at the Great Hall of the People in Beijing on Sunday.
The “around 5 per cent” expectation for 2023 is above the average of 4.5 per cent growth in the past three years. It is also above the 4.8 per cent average growth rate needed to fulfil China’s aspirations of becoming a moderately prosperous nation over the next 13 years.
02:03
China targets to boost gross domestic product by ‘around 5%’ in 2023
“[The 2023 GDP goal] is not overly optimistic and does not spend too much on boosting growth. It focuses more on longer-term growth challenges,” said Iris Pang, ING Bank’s chief Greater China economist.