China’s GDP target in realistic range despite challenges: ADB chief economist

CHINA’S growth target is in a realistic range, but there are some challenges including property risks and economic imbalances, Asian Development Bank (ADB) chief economist Albert Park said on Thursday (Mar 28).

At the beginning of its annual parliament meeting last week, Premier Li Qiang announced a 2024 economic growth target of around 5 per cent, and unveiled modest stimulus measures.

“I think the 5 per cent target for China is in a realistic range… but there are some challenges,” Park said.

“We continue to see pretty significant negative investment growth, and property prices actually declining pretty steadily.”

He added, however, that property risks and economic imbalances were still substantial.

Recent indicators suggest a stabilisation in Asia’s largest economy.

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But overall gains remain tempered by the persistent fragility in the property market, pointing to a divergence in China’s post-pandemic recovery.

Citi on Thursday raised its forecast for China’s 2024 economic growth to 5.0 per cent from 4.6 per cent.