BEIJING, March 5 (Reuters) – China set a modest target for economic growth this year of around 5% this year, according to a government work report on Sunday as the National People’s Congress (NPC) opened its annual parliamentary session.
In the report, outgoing premier Li Keqiang said it was important to prioritize economic stability and set a target of creating about 12 million urban jobs this year, up from last year’s target of at least 11 million.
China’s gross domestic product (GDP) grew just 3% last year, one of its worst performances in decades, marred by three years of COVID-19 restrictions, the crisis in its huge real estate sector, a crackdown on private business and weaker demand for Chinese became exports.
This year’s target of around 5% was on the lower end of expectations, as political sources recently told Reuters that a range of up to 6% could be set.
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Li set a target for the government’s budget deficit of 3.0% of GDP, according to the report, widening from a target of around 2.8% last year.
This year’s parliamentary session will see the biggest government reshuffle in a decade as Beijing faces a multitude of challenges as it seeks to revive its COVID-stricken economy.
Li and a number of more reform-minded economic leaders are set to retire during Congress, making way for loyalists to President Xi Jinping, who further consolidated his power when he secured a precedent-breaking third term at the helm of the Communist Party in October’s Congress.
During the NPC, former Shanghai Party leader Li Qiang, a longtime Xi ally, is set to be confirmed as premier tasked with revitalizing the world’s second-largest economy.
The stamp parliament, which ends on March 13, will also discuss Xi’s plans for an “intense” and “far-reaching” reorganization of state and Communist Party entities, state media reported Tuesday, with analysts expecting a further deepening of the Communist Party’s penetration of state organs .
The NPC opened on a smoggy day amid tight security in the Chinese capital, with 2,948 delegates gathered in the cavernous Great Hall of the People on the west side of Tiananmen Square.
It is the first NPC meeting since China abruptly scrapped its zero-COVID policy in December after rare nationwide protests.
writing by Tony Munroe; Edited by Himani Sarkar and William Mallard
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