China Sets 2024 GDP Target at Around +5%: NPC Highlights

Olivia Tam
·4 min read
1

(Bloomberg) -- China sets its economic growth target at around 5% for this year, according to the government work report released at the National People’s Congress.

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  • Other major economic targets for 2024 are also announced as the country’s annual legislative meeting begins in Beijing. Goals include:

    • To add over 12 million urban jobs

    • Targets urban unemployment rate of around 5.5%

    • Plans budget deficit at 3% of GDP

    • Plans 7.2% increase in national defense spending

    • Plans 1 trillion yuan of ultra-long special government bonds

    • NOTE: China Sets Ambitious Growth Goal in Push to Boost Confidence

  • NOTE: The annual session of National People’s Congress begins on March 5 and will conclude on March 11. Chinese Premier Li Qiang delivers his annual work report at the NPC opening. The top economic planning body National Development and Reform Commission and Ministry of Finance also release annual work reports

    • Full reports: China’s Premier Addresses NPC: Full Government Work Reports

  • Monetary and fiscal policy

    • Reiterates prudent monetary policy will be flexible, appropriate, targeted and effective

    • Reiterates proactive fiscal policy will be appropriately strengthened and improved in quality and efficiency

  • Fiscal spending and revenue:

    • Plans 4% rise in fiscal spending in 2024

    • Plans 3.3% rise in fiscal revenue in 2024

    • Prospects for 2024 fiscal revenue and expenditure remain ‘quite grave’

    • 2024 investment from central government budget 700b yuan

    • Plans 3.9t yuan of new special local govt bonds in 2024

    • To sell ultra-long special treasury bonds in coming years

    • Plans government debt management mechanism that meets development need

    • Caps end-2024 outstanding sovereign bonds at 35.2t yuan

    • Plans 4.1% rise in 2024 transfer payments to provinces

    • NOTE: China Plans $139 Billion Special Ultra-Long Debt for Economy

  • Economy and finance:

    • Vows to ensure economic, financial stability

    • Money supply to match economy growth, prices target

    • To formulate policies on digital economy development

    • To promote employment of young people

    • Expects over 11.7 million college graduates this year

    • Says ‘employment for key groups’ remains a big challenge

    • Vows finance, tax policies to support employment

    • Supports platform firms to innovate, add jobs

    • To ‘work toward a birth-friendly society’

    • To promote cross-border e-commerce healthy development

    • To develop smart home appliance, travel, sports sectors

    • To boost demand via increasing incomes, supply improving

    • To stabilize spending on big-ticket items like cars

    • To tackle risks from small, medium-sized financial firms

    • To promote steady, healthy financial market development

    • To ensure national treatment for foreign firms

    • To increase loans, debt financing for private enterprises

    • To prevent risk from transmitting across markets, borders

    • Foundation of China’s economy recovery not solid enough: Premier Li Qiang

    • NOTE: China Vows to Defuse Financial Risks at Top Legislative Meeting

  • Military:

    • To coordinate military readiness, to defend sovereignty

    • Plans 7.2% rise in defense spending, biggest in 5 years

    • NOTE: China Defense Spending to Climb 7.2% as Xi Pursues Buildup

  • Real estate sector:

    • To tighten management of housing pre-sale funds

    • To meet reasonable funding needs for all developers

    • Companies, cities should be responsible for housing delivery

    • To address ‘root causes’ to defuse property, debt risks

    • To move faster to foster new property development model

    • China omits ‘houses for living in, not speculation’ slogan in government report for first time since 2019

    • NOTE: China to Refine Real Estate Policies to Support Ailing Sector

  • Energy and agriculture:

    • To cut energy consumption per unit of GDP by 2.5% in 2024

    • To make progress in 50m ton grain output increase

    • To expand national carbon market to more industries

    • To improve pricing mechanism for piped oil products

    • To accelerate reform for energy prices, coal power

  • Trade:

    • To enhance credit support for exports, imports

    • To appropriately cut import tariffs on advanced tech

  • Hong Kong and Taiwan:

    • To implement principle of patriots for Hong Kong

    • Opposes Taiwan independence separatist activities

  • Support for various sectors:

    • To relax market access for telecoms, medical sectors

    • Plans tech transformation, upgrading in manufacturing

    • To coordinate making breakthrough in core technology

    • To develop commercial spaceflight, low-altitude sectors

    • To develop bio-manufacturing sector

    • To launch AI plus initiative

    • To develop future-oriented digital infrastructure

    • To speed up building of battery charging facilities

    • To encourage NEV enterprises to grow stronger

--With assistance from Alfred Liu and Lin Chen.

(Updates with more details.)

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