“We’re on track to achieve the annual growth target of around 5% that we set earlier this year,” he said. He made the remarks during the World Economic Forum (WEF) summit in Tianjin, northern China. “We are fully confident and have the ability to promote the high-quality development track of China’s economy.”
Li’s remarks come as Beijing faces rising economic challenges. After an impressive 4.5% growth in the first quarter, China’s recovery has stalled in numerous sectors. Manufacturing, real estate, retail, and services are among the industries affected.
S&P Global reduced its 2023 expansion forecast for China to 5.2%, down from 5.5% previously. It was the first time in 2023 that an international credit rating agency reduced the country’s expansion forecast. The key risks, according to its analysts, are consumer and housing market confidence.
Earlier this month, an array of Wall Street banks reduced their forecasts as well. The recovery ignited by China’s post-Covid resuming in the first quarter appeared to have faded in the April-to-June period, according to Goldman Sachs, which reduced the country’s yearly forecast to 5.4% from 6%.
China’s Strategies and Measures
The People’s Bank of China reduced its main benchmark lending rates for the first time in ten months to boost growth. Many analysts, however, advocated for a much more aggressive stimulation pack, including strategies to improve consumption and the housing market.
Li promised, on Tuesday, to make all effort to help the recovery in the country.
“We will introduce … more pragmatic and more effective measures,” he said. Furthermore, he stated that the measures are designed to increase local demand and market dynamism.