China set GDP growth target in 2023 at the level of 5%

Premier of the State Council of the People's Republic of China Li Keqiang said that China's GDP growth in 2023 is planned at 5%. The politician said this while presenting the country's socio-economic development plan at the session of the National People's Congress (NPC) that opened in Beijing. 

At the same time, many economists believed that the Chinese government's goal would be more ambitious – at the level of 5.3% in 2023 and 5% in 2024. Analysts believe that the 5% growth target in the current forecast can be considered as minimal, and the actual economic recovery may be stronger. For example, analysts at Swiss bank UBS have raised their forecast for the growth of the Chinese economy for 2023 to 5.4% from the previously expected 4.9%.

The recent forecast of the Chinese authorities may mean that the government plans to refrain from new fiscal and monetary stimulus measures. At the same time, defense spending, according to the plan of the Chinese authorities, will grow faster than the economy – by 7.2%, reaching the level of 1.55 trillion yuan ($225 billion). Planned defense spending is well ahead of development-related budget items, such as education, social security and research.

Recall that in 2022, the Chinese economy, which suffered from repeated covid lockdowns, increased by only 3%, not reaching the target 5.5%.