(Yicai Global) March 13 -- It will take a great effort to reach China’s gross domestic product growth target of around 5 percent this year, considering last year’s high baseline and the many new challenges, the country’s new premier said at a press conference today.

China’s economic output topped CNY120 trillion (USD17.4 trillion) in 2022, forming a high base, and it will not be easy to outdo this, Li Qiang said.

Economic stability remains our top priority, especially by giving full play to macroeconomic policy, boosting demand, introducing reforms as well as preventing and mitigating risks, Li said.

China has many advantages, such as its huge market size, a complete industrial system, abundant human resources and a solid development foundation, he added.

Economic growth is fundamental to solving the employment problem, Li said. China will create more channels for employment, he added, referring to the 11.5 million college students who will graduate this year.

The year has got off to a good start and the country’s key economic indicators rebounded in the first two months.

The purchasing managers’ index for manufacturing hit a 10-year high in February at 52.6, indicating that the market is confident about the future, Kang Yi, director of the National Bureau of Statistics, said yesterday. Other leading gauges such as railway freight volume, power generation and balance of loans in Chinese yuan have also improved.

“We expect the economy to expand 5 percent this year,” said Peng Wensheng, chief economist at China International Capital. The Chinese economy is likely to recover greatly this year with strong fiscal and monetary support now that pandemic prevention restrictions have been lifted and as last year’s stimulation policies take effect.

Economic recovery has been noticeable since the beginning of the year, and GDP growth is likely to top 5 percent, said Ming Ming, deputy director of Citic Securities Research Institute. Fiscal policy will be more active, and monetary policy more precise and effective in 2023.

“We believe that economic growth may reach 5.5 percent this year,” Shao Yu, chief economist at Orient Securities, told Yicai Global. A rebound in consumption could make a noticeable contribution to economic growth while investment should stabilize, especially investment in real estate. Consumption and investment will form a synergy to support growth.

Editor: Kim Taylor