More Moderate 2023 Growth Target Of “Around 5%”

MNI (Australia) – The National People’s Congress in its Government Work Report has set the growth target for 2023 at “around 5%”, which was more moderate than expected due to the slowing global demand environment. The CPI inflation target is set at “around 3%”, which is more of a ceiling given that inflation is unlikely to reach 3% this year.

• This year includes a reshuffling of government leaders and so the targets likely signal the views of the new leadership, who will hold a press conference on March 13.
• Policy will remain supportive of the property sector and will continue to help residents with purchasing a home. But the statement “housing is for living in, not for speculation” has been removed in the “2023 policy suggestions” section.
• The fiscal targets are 3% official on-budget ratio and RMB 3.8tln local government specialbond issuance quota, which are quite cautious. While the monetary policy tone was unchanged from the Q4 2022 PBoC monetary policy report.
• The new urban job creation target is “around 12 million” and the surveyed unemployment rate target “around 5.5%”.