Premier Li Keqiang’s Report Projects 5% GDP Growth For China

• China expects 5% economic growth and aims for 3% inflation and 12M new jobs.
• Premier Li Keqiang praises China’s remarkable economic resilience in a challenging year.
• China’s defense budget is to increase by 7.2%, strengthening national defense mobilization capability.

According to Premier Li Keqiang’s government work report, China is expecting its economy to expand by approximately 5 percent this year, which is higher than the 3 percent growth in GDP observed in 2022 due to the impact of the Covid-19 pandemic. 

Additionally, the country aims to maintain inflation at 3 percent and create 12 million new urban jobs in the current year. Premier Li Keqiang revealed this during the opening of the National People’s Congress session on Sunday, where he presented his final government work report.

The premier, speaking at the Great Hall of the People in Beijing, highlighted the country’s efforts to maintain economic stability in the face of the challenges and difficulties of 2022.

Despite the complex and ever-changing environment, China was able to achieve its main targets and tasks for the year, maintaining stable economic performance. Premier Li Keqiang credited the remarkable resilience of China’s economy for these accomplishments. 

While addressing the delegates at the Great Hall of the People in Beijing, Premier Li Keqiang acknowledged that China continues to face internal and external challenges.

As per the premier, global inflation is high, and global economic and trade growth is declining. Additionally, external attempts to suppress and contain China is on the rise. At home, the foundation for stable growth needs to be strengthened, inadequate demand remains a significant issue, and the expectations of private investors and businesses are uncertain.

Premier Li Keqiang emphasized the need to stimulate domestic demand as a way forward. He suggested prioritizing the recovery and expansion of consumption and boosting the incomes of urban and rural residents through various means. The premier also proposed that government investment and policy incentives should effectively promote societal investment.

China’s defense budget will increase by 7.2 percent in 2023, continuing its single-digit percentage growth for the eighth consecutive year. The government’s work report revealed that the national defense mobilization capability has been strengthened, safeguarding China’s sovereignty, security, and development interests. Additionally, the country’s armed forces have been urged to enhance their military capabilities, carry out military operations, and increase combat readiness.