China Aims for Economic Transformation, Expecting 5% GDP Growth in 2024

China’s Premier Li Keqiang stated at the National People’s Congress (NPC) on Tuesday that China as the world’s second largest economy will target economic growth in 2024 at around 5% by transforming its development model, curbing industrial overcapacity, defusing property sector risks, and cutting wasteful local government spending.

However, as COVID-19 caused the country to have structural difficulties and suffer a large amount of municipal debt, the government will need to deploy stronger stimulus, even though the target was similar to last year.

Premier Li Qiang stated that the government should be well prepared for worst-case scenarios while also emphasizing the need to push for improvement in the country’s growth model.

Meanwhile, the fact that there have not yet been concrete details on the changes caused investors to show disappointment, as some were hopeful for a bigger push from the government.