Xi Jinping: "This Year's Economic Growth Rate Around 5%... Expected to Meet Target"

Chinese President Xi Jinping forecasted that this year's economic growth target set by the authorities, "around 5%," will be achieved.

Yonhap News

According to the state-run Xinhua News Agency on the 31st, President Xi said in his speech at the New Year's chat session of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) that "the development process over the past year was extraordinary and the results were encouraging," adding, "Economic operations were generally stable with development, high-quality development was steadily promoted, and scientific and technological innovation made significant progress."

President Xi continued, "The annual gross domestic product (GDP) is expected to grow around 5%, and grain production is expected to exceed 1.4 trillion jin (700 billion tons) for the first time."

Chinese authorities set this year's economic growth target at "around 5%," the same as last year. However, domestic demand and the real estate market slump, sluggish investment, accumulated local government debt, and trade frictions with the Western bloc have consecutively caused difficulties in overall economic revitalization.

Amid concerns that the third-quarter growth rate of 4.6% signaled a "red light" for this year's economic growth, Chinese authorities have intensified efforts since September to supply liquidity, stimulate domestic demand, and support exports, focusing on achieving the "around 5%" growth target.

As a result of these efforts by the authorities, President Xi effectively "confirmed" on this day that the Chinese economy has overcome various difficulties and ultimately achieved the annual economic growth target.

However, there is also analysis that it will be difficult for China, which has maintained rapid growth for decades since reform and opening up, to continue recording a high growth rate exceeding 5% in the long term. The Chinese Communist Party's official newspaper, People's Daily, expressed in a commentary this month that an economic growth rate "below 5%" is also acceptable, indicating that the authorities are considering a "soft landing."

Nonetheless, President Xi focused on instilling confidence by stating on this day, "There is order and effectiveness in resolving risks in key areas, and livelihood guarantees are steadily progressing. Employment and prices remain stable."