China Sets 5% GDP Growth Target Amid Economic Challenges

China is expected to announce a target of five percent GDP growth for the year, on Tuesday. This figure is among the lowest in decades but remains consistent with last year's target.

According to a report by AFP, the GDP target is scheduled to be revealed later in the day during a session of China's parliamentary body. The country continues to face challenges arising from the property sector crisis, high levels of youth unemployment, and reduced global demand for Chinese goods due to a global economic slowdown.

China pledged to prioritize stability while advancing progress in the upcoming year, as per sources cited in the report. The country is also committed to expanding its network of high-standard free trade zones with a global focus. It also pledged to "appropriately cut import tariffs on advanced technology and equipment."

For years, Beijing has hesitated to directly address the increasing pressures on its economy through a significant bailout, concerned about the potential strain it could place on the delicate state finances.

Meanwhile, according to GDP data released by the Ministry of Statistics last week, the Indian economy expanded by 8.4 per cent in the Q3FY24. Manufacturing surged ahead with a remarkable double-digit growth rate of 11.6 per cent. Similarly, the construction industry recorded a growth of 9.5 per cent, reflecting positive momentum in infrastructure and development projects.

However, there was a slight contraction of 0.8 per cent seen in the agriculture sector.