China’s GDP target in realistic range despite challenges, ADB says

BOAO, China (Reuters) -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.

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

“I think the 5% 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.”

Park said property risks and economic imbalances were still substantial.

Recent indicators suggest a stabilisation in Asia’s largest economy. 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% from 4.6%.

(Reporting by Kevin Yao; Writing by Liangping Gao; Editing by Christian Schmollinger and Kevin Liffey)


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