China sets 5 percent growth target for 2024 amid economic headwinds | Economy

Beijing sets one of its lowest targets in decades amid property crisis, slowing exports and population decline.

China will set an economic growth target of about 5 percent for 2024, one of its lowest in decades.

China’s rubber-stamp National People’s Congress (NPC) is set to officially unveil the target on Tuesday as the world’s second-largest economy is facing serious headwinds.

Chinese Premier Li Qiang will deliver his maiden work report outlining policy goals for the year as the Chinese economy grapples with multiple challenges including a property crisis, slowing exports, geopolitical tensions with the United States, population decline, huge debt and record youth unemployment

Beijing’s growth target, outlined in official documents seen by multiple media outlets, matches last year’s target of about 5 percent.

China’s economy officially grew 5.2 percent in 2023, its weakest performance in decades excluding the COVID-19 pandemic downturn.

The annual gathering is being closely watched by investors for announcements to shore up confidence in the economy.

International investors have been pulling out of China at record rates, with $68.7bn worth of corporate and household capital flowing out of the country last year.

Analysts have tempered expectations of sweeping measures to boost the economy due to Beijing’s aversion to broad-based social spending.

Li’s speech on Tuesday comes after officials announced that the premier would not hold a news conference at the end of the legislature’s annual session for the first time since 1993.

The move has been seen as a further example of Chinese President Xi Jinping’s efforts to concentrate control in the hands of the ruling Communist Party.