China to Unveil GDP Target, Avoid ‘Bazooka’ Stimulus at Meeting

• China is set to announce its 2024 growth target and outline its strategy for supporting the slowing economy at the nation’s most high-profile annual political gathering this week.
• Premier Li Qiang will deliver the government work report for the first time at the National People’s Congress (NPC) on Tuesday (Mar 5). Officials are looking to chart a recovery after a turbulent year that saw the economy grapple with deflation, an ongoing property crisis, mounting debt burden, and foreign capital exodus.
• Investors will closely scrutinise policy priorities and stimulus signals as Beijing is expected to announce an annual growth target of around 5.0% – the same as last year but one that will be harder to achieve because of a higher base of comparison. Areas of focus will include the strength of fiscal stimulus, new economic drivers as President Xi Jinping steers China away from a property-driven growth model, and the government’s plan for boosting consumption.
• Beijing’s policy stance will likely stay growth-friendly but won’t be a “bazooka-type stimulus”, JPMorgan Chase & Co economists said in a note previewing the NPC. “The policy tone has been pre-determined at the Central Economic Work Conference last December, and we see little chance of a major deviation.”
• “It will be a positive surprise” if the work report shows that policymakers share market concerns about the economic challenges, including deflation risks, unemployment, and fallout from the property downturn, the economists added.

(Source: The Business Times)