China GDP: what is needed to achieve the ‘very challenging’ 5% economic growth goal for 2024?
- Beijing has defended its ambitious goal of growing the economy by ‘around 5 per cent’ this year, insisting it matches China’s potential for economic growth
- Analysts say China must roll out proactive fiscal policies and a ‘flexible and appropriate’ monetary policy, while also fixing the ailing property market
For He Bin, a car dealer in eastern China’s Zhejiang province, 2024 is not expected to be an easy year despite Beijing’s pledge to again keep economic growth at “around 5 per cent”.
After last year represented a year of a shaky post-pandemic recovery, Beijing’s 2024 growth target is widely believed to have been set to shore up confidence at home, and also dismiss international doubts over China’s prospects.
But in reality, it is still set to be challenging to achieve without reopening demands and a lower base after the same target had been set for last year.
Emerging sectors, such as new energy and health services, are supporting growth amid a transition toward a higher-quality economy, but traditional industries are sceptical if they can follow suit.
In the past couple of years, the total business revenue has been on the decline, and people are showing a preference for cheaper and lower-end cars
“I’m not even expecting any expansion in business this year. It would satisfy me if it remains at the same level as last year,” said He, who has been in the trade for over a decade.
