Dec 4 2024: China is not fixated on achieving specific GDP growth rates, and economic expansion below 5% is acceptable, according to a Wednesday editorial in the state-run People’s Daily. The publication emphasized prioritizing quality growth over speed, rejecting the notion of “worshiping speed.”
Although the government set a target of “around 5%” for 2024, the economy has struggled due to ongoing property sector challenges and local government debt issues. Beijing has introduced stimulus measures since late September, but their impact has been limited, with economists calling for additional policy support. U.S. President-elect Donald Trump’s tariff threats also pose a potential hurdle to growth.
The editorial highlighted the need to avoid overexpansion, noting that unsustainable growth could deplete future potential. It stated that a growth rate slightly above or below 5% would still be acceptable, provided it results from balanced development.
Amid rising global economic instability and geopolitical uncertainties, the publication warned of heightened external pressures, likely referencing U.S. measures targeting Chinese exports and technology.
Domestic economic challenges persist, with sluggish consumption and difficulties in stabilizing investment, underscoring the fragility of China’s recovery. Last month, Reuters reported that government advisors were recommending maintaining a 5% growth target for 2025.
