China sets 5% GDP growth target for 2024 amid push to boost confidence

China will set a gross domestic product (GDP) growth target of around 5% for the year, one of its lowest in decades and in line with last year, according to a copy of the government’s annual work report seen by Bloomberg News.

Premier Li Qiang will officially unveil the annual GDP target while delivering his first work report to the national parliament, which kicks off Tuesday. 

The government is also targeting unemployment of around 5.5% in 2024 and aims to add 12 million urban jobs, according to the report.

Moreover, China’s budget deficit is projected at 3% of GDP for 2024 and the country’s military budget will increase by 7.2% and be set at 1.665 trillion yuan ($231.4 billion) this year, according to Lianhe Zaobao citing the government documents seen by reporters.

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The National People’s Congress meeting comes as top leaders try to restore faith in an economy grappling with a post-pandemic slowdown. Despite that, China’s No. 2 official has signaled authorities won’t rely on massive stimulus to drive expansion as they try to break the country’s reliance on debt-driven growth, Bloomberg reported.

Li’s report will also provide clues on authorities’ specific plans for fiscal and monetary stimulus, which could impact global commodity prices and inflation.

(With inputs from Bloomberg)