Earlier this year, China announced an ambitious goal to achieve 5% economic growth in 2024. Today, nearly seven months into the year, economists and government officials say they are optimistic that China can achieve its target.
New Ways of Growth
After the government’s open and reformist economic policies in the seventies and eighties, China’s economic growth rate was unmatched. Economic output per person, for example, increased by about 3000% in recent decades.
China’s economic growth has slowed in recent years. Growth is expected to decline to 3.3% by 2029, according to the International Monetary Fund.
Experts confirm that new ways of growth will be required for China to maintain steady growth. This includes expansion into new and transforming industries like artificial intelligence, digital financial services, and green technologies such as electric vehicles.
High-Quality Growth
In 2017, Chinese President Xi Jinping said China would transition its economy from a period of high-speed growth to a stage of high-quality growth.
Today, experts confirm that focusing on high-quality growth remains vital to ensure medium and long-term economic growth.
Geopolitical Headwinds
Analysts point out that despite China’s positive economic outlook for 2024, obstacles and barriers to growth remain. Specifically, this includes geopolitical tensions and global economic fragmentation.
The International Monetary Fund estimated last year that economic fragmentation and increased international trade restrictions could cost the global economy $7.4 trillion and cut global economic output by up to 7%.