China’s government has set an official economic growth target of 5% for this year as the country of 1.4 billion people finally emerges from the COVID-19 pandemic.
The economic growth target was released at the annual National People’s Congress, the country’s de facto legislature that draws 3,000 delegates from across the nation.
China’s “zero-Covid” policy led to ongoing lockdowns in the country over the past year, which hampered economic growth. However, a relaxation of those strict rules now has China’s economy re-emerging.
China’s economy added more than 12 million jobs last year, with the unemployment rate falling to 5.5%, according to the country’s statistical agency.
However, China’s gross domestic product (GDP) expanded by 3% in 2022, missing the official target of 5.5% due to prolonged COVID-19 restrictions. It was the second lowest annual growth rate in China since 1976.
This past December, the Communist Party abruptly ended its “zero-Covid” policy, allowing a wave of infections to sweep across the country.
Recently released data showed China’s factories had their best month in 11 years in February, demonstrating how quickly economic activity has recovered following the end of the restrictions.
Moody’s Investors Service recently raised its China growth forecast to 5% for both this year and 2024, up from 4% previously, citing a stronger than expected rebound in economic activity.
