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The
economy of the capital city expanded 5.2% in 2023, in line with
the national economy, which has so far posted feeble
post-pandemic growth amid a deepening property crisis, mounting
local government debt and persistent deflationary risks.
"The target of around 5% is needed to stabilise expectations and
boost confidence, to achieve important livelihood goals such as
employment and household income," the Beijing Daily reported on
Sunday, citing an unnamed government official.
"But a growth rate of around 5% is still very challenging, and
achieving the goal requires arduous efforts," the official said.
Beijing aims to control its survey-based urban jobless rate
below 5% this year.
China's 2023 economic growth, which was slightly ahead of the
annual target of around 5%, was partly helped by the previous
year's low-base effect amid COVID-19 lockdowns.
Chinese leaders have made boosting confidence in the economy a
top policy priority, as businesses and consumers are wary of job
security, income growth and the housing market.
Beijing's growth target for 2024 "may serve as a precursor" to a
more supportive national growth target, said Tommy Xie, head of
Greater China Research at OCBC Bank.
The national growth target is expected to be unveiled at the
opening of the annual parliamentary meeting in March.
"This upward revision in the growth target for the current year,
even with a higher base, reflects Beijing's more pro-growth
stance," Xie said in a note.
Policy insiders expect Beijing will maintain a similar growth
target of around 5% for this year, but analysts say that may be
a tall order even with additional stimulus.
Analysts polled by Reuters expected economic growth to slow to
4.6% this year.
The southwestern municipality of Chongqing and Sichuan province
both set their 2024 growth targets at around 6%, while eastern
Shandong province aims to grow more than 5% this year. Northern
Hebei province sets this year's growth target at around 5.5%.
(Reporting by Ellen Zhang and Kevin Yao; editing by Miral Fahmy)
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