China Sets A Modest GDP Growth Rate Of 5% For 2023, Scales Down Ambitions After Economy Grew By Just 3% In 2022

China has set its annual GDP growth target at around 5 per cent for 2023, hoping its pandemic-battered economy will stage a quick recovery amid global economic volatility and geopolitical uncertainty.

The GDP growth target, along with other economic development goals, was released in the final government work report delivered by outgoing Premier Li Keqiang on Sunday (March 5) to the first session of the 14th National People's Congress (NPC).

"This year, it is essential to prioritize economic stability and pursue progress while ensuring stability. Policies should be kept consistent and targeted, and they should be carried out in a more coordinated way to create synergy for high-quality development," Premier Li said in the 'Government Work Report'.

Hit by prolonged pandemic-related restrictions, Chinese economy grew last year by just 3 per cent though the target it had set was 5.5 per cent.

The 5 per cent target growth for 2023 is still above the average of 4.5 per cent growth the country achieved in the past three years. It is also above the 4.8 per cent average growth rate needed to fulfil China’s aspirations of becoming a moderately prosperous nation over the next 13 years.

Chinese economy grew 2.2% in 2020 and 8% in 2021.

The IMF recently forecast a GDP growth of 5.2 percent for China this year and 2.9 percent for global growth. Rating agency Moody's also recently raised its forecast for China's real GDP growth to 5 percent for both 2023 and 2024, up from previous projections of 4 percent.

China also announced on Sunday it would increase military spending this year by 7.2% to $220 billion.