China sets its GDP target at “around 5%” for 2023

China has set a growth target of “around 5%” for 2023, according to Prime Minister Li Keqiang’s government work report released Sunday.

Analysts generally expected China to set a GDP target of more than 5% for 2023. The average growth forecast is 5.24%, according to CNBC analysis.

China has also set a target of 3% for the CPI, and an unemployment rate of 5.5% for people in cities – with around 12 million new jobs created in urban areas.

The work report called for “prudent monetary policy” to be implemented in a “targeted” manner.

Li presented the report on Sunday at the opening of the National People’s Congress within the framework of the annual “two-sessional” parliamentary meeting. This is his last conference as prime minister.

The work report indicated the upcoming change in the leadership of the central government, with eight priorities for economic policy identified.

Stimulating domestic demand – from consumption and investment – came first, followed by improving the industrial system and supporting non-state-owned companies, according to the report.

Other priorities included “intensifying efforts to attract and utilize foreign investment,” “prevent and defuse financial risks,” stabilize grain production, pursue green development, and develop social programmes.

In real estate, the Labor report called for supporting people in buying their first homes and “helping solve housing problems for new and young urbanites.”

“We must ensure the effective prevention and mitigation of risks in leading high-quality real estate enterprises, help them improve debt-to-asset ratios, and prevent unregulated expansion of the real estate market to promote the stable development of the real estate sector,” the report said.

The slump in the huge real estate sector weighed on China’s economic growth last year. Beijing has cracked down on developers’ heavy reliance on debt for growth in 2020.

China’s GDP rose just 3% last year in a rare miss of the national target.

The country has set a growth target of around 5.5% for 2022. But Covid controls, including a two-month lockdown of Shanghai, and a real estate slump, have dragged down growth.

This year, the two sessions are also set to formalize the government titles of the new prime minister, deputy prime ministers and heads of various ministries.

This year’s National People’s Congress is scheduled to end on March 13.