China’s Premier Downplays GDP Growth, Says Economy Unbalanced
China’s Premier Li Qiang said the economy remains unbalanced and downplayed gross domestic product growth in his first public comments since taking office.
(Bloomberg) -- China’s Premier Li Qiang said the economy remains unbalanced and downplayed gross domestic product growth in his first public comments since taking office.
Li said most people won’t keep their eyes on GDP growth on a daily basis, and are more focused on issues like housing, employment, income and education. Per-capita income in the country is still limited, he told reporters in Beijing, and the economy is unbalanced.
The government will prioritize stability, which means stabilizing growth, prices and jobs, Li said. Achieving this year’s growth target of around 5% is “not an easy task” because of multiple risks, he said.
Beijing set a modest GDP growth target for this year after missing 2022’s goal by a wide margin, hoping consumer spending will drive the recovery after the government’s zero-tolerance approach to Covid was abandoned late last year. Economists expect growth to reach 5.3% this year.
While consumer spending has shown signs of a stronger rebound, the outlook remains uncertain. The effect of infrastructure investment — a traditional tool Beijing uses to boost the economy — has declined while local government debt burdens have ballooned. Exports are also falling and the housing market is yet to recover from a historical slump.
Li, a longtime associate of President Xi Jinping and the former Communist Party boss of Shanghai, was officially appointed premier on Saturday at the National People’s Congress, the annual parliamentary gathering.
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