GDP growth expectations and CPI control the three key announcements

GDP growth expectations and CPI control: the three key announcements from China's “two sessions”.

The so-called “Two Sessions”, China's highest political event, took place last Monday and Tuesday, March 4th and 5th, in the city of Beijing. The event opened the second session of the 14th National Committee of the Chinese People's Consultative Conference and the 14th People's Congress of China. He took part in the latter Chinese Premier Li Qiangwho announced important measures for the national economy for 2024.

Quiang explained in detail the Chinese government's 2023 work report and announced the GDP growth target for the next 12 months, the job creation target, controlling the increase in producer price index (CPI) and more.

What important announcements were made at the 14th China NPC Session 2024?

Setting the GDP target for 2024

Premier Li Qiang emphasized that China achieved a GDP of 5.2% last year. The Chinese politician also said that the country will continue to offer growth opportunities but also challenges in this new year period.

On Monday, March 4th and Tuesday, March 5th, the opening of the “Two Sessions” took place at the People’s Palace.  Photo: Francisco Claros/La República

On Monday, March 4th and Tuesday, March 5th, the opening of the “Two Sessions” took place at the People’s Palace. Photo: Francisco Claros/La República

Qiang announced that the country aims to achieve gross domestic product growth of around 5% by 2024. “It meets the requirements of the objectives of the XIV Five-Year Plan (…) and at the same time contributes to accelerating the optimization of the economic structure,” he explained about this decision.

To achieve this, he explained that one of the measures will be to accelerate the modernization of agriculture and rural areas. This includes increasing grain production capacity by 50 million tons, reducing rural poverty rates through access to education and housing security, and creating rural brands, among others.

Creating more than 12 million jobs by 2024

According to Li Qiang's report submitted to the NPC, China will create 12 million jobs in urban areas in 2023. The plan for the new year is to at least exceed this value.

“We have adjusted the target, which was around 12 million in 2023, to over 12 million by 2024, which meets the current objective requirements in terms of employment stabilization, structural adjustment and increased confidence,” he said.

    China's National People's Congress gathered more than 2,000 deputies.  Photo: Francisco Claros/La República

China's National People's Congress gathered more than 2,000 deputies. Photo: Francisco Claros/La República

Controlling the increase in CPI by about 3%

The Consumer Price Index (CPI) is the main indicator of inflation in the Asian country. For this year, Prime Minister Li Qiang said the plan is to limit the increase to about 3%.

“Comprehensively analyzing both the remaining impact of price changes in 2023 and the new factors of the increase in 2024, a moderate increase in the CPI is foreseeable this year,” he added during his speech to the APN.