At the level of “about 5%”, i.e. below average analyst estimates, China its growth goal by 2023, while laying the foundations for economic recovery after the lifting of strict health measures taken to combat the spread of the coronavirus. A related report released by the Chinese government over the weekend was seen as conservative, indicating that China acknowledges the difficulty of recovering from the pandemic, but also the government’s caution after failing to reach its 2022 targets. As for inflation for 2023, the target has been set. by 3% and for unemployment in urban centers by 5.5%. The goal is to create about 12 million new jobs in urban centers, above last year’s target of “more than 11 million”, according to Bloomberg and moneyreview.gr. The report also calls for a “targeted” implementation of “prudent monetary policy.” China’s budget deficit is expected to widen to 3% of GDP this year, up from 2.8% in 2022. USA on a wide variety of topics, from advanced technology and semiconductors to Taiwan.

“China’s economy is recovering steadily and showing great potential and momentum for further growth,” said outgoing Prime Minister Li Keqiang. However, the targets were generally seen as conservative by political observers and economists, while concerns were raised that the second-largest economy’s contribution to the international economic arena would ultimately be limited this year. “We must address the development of the digital economy, strengthen regulatory oversight and support the development of the platform economy,” the report says. In this context, eight priorities relating to the economy were presented.

China’s economic targets are seen as conservative, with concerns being raised that its contribution to the international economic arena this year will be limited.

First on the list is strengthening domestic demand driven by consumption and investment. In second place is the improvement of the sectoral system and support for non-state structures.

It also mentions strengthening efforts to attract and use foreign investment, preventing and eliminating financial risks, stabilizing grain production, continuing policies aimed at the transition to green growth and its completion, as well as training, promoting and implementing social programs for needy groups of the population. “Consumer spending is likely to drive growth. Business investment may remain flat until stronger action is taken to support the private sector,” Bert Hoffman, former head of China at the World Bank, told Bloomberg.

With regard to the housing sector, which accounts for up to 20% of China’s GDP, the focus was on the need to provide support for the acquisition of the first home and “help solve the housing problems of new urban residents and young adults.” As hinted by Chinese Premier Li Keqiang, the government will also seek to avoid “unregulated market expansion.” He also made special mention of national security, saying that policies are needed that can balance development and security. In this context, China is going to increase defense spending this year by 7.2 %, that is, the fastest pace in the past four years, to 1.55 trillion yuan (more than 223 billion dollars).In 2022, the country’s defense spending increased by 7.1%, and in 2021 – by 6, 8%.Finally, it is worth mentioning that China’s defense spending budget has more than doubled this year compared to ten years earlier.According to Chinese Premier Li Keqiang, Beijing will strive to “peacefully reunification” with Taiwan, while maintaining the same attitude towards the island nation.