(Yicai) March 5 -- China’s gross domestic product growth target of 4.5 percent to 5 percent for this year aligns with the country’s economic potential and supports its long-term development vision, according to the head of the drafting group for the government work report.

The target is consistent with China’s goal of doubling per capita GDP by 2035 compared with 2020 and reaching more than USD20,000, Shen Danyang, director of the State Council Research Office and the head of the group that plans the annual policy document, said at a press conference today.

China’s economy grew at an average annual rate of 5.4 percent between 2021 and 2025, and maintaining average annual growth of more than 4.17 percent over the next decade would be sufficient to achieve that target, Shen noted.

The growth range was designed to allow flexibility in responding to uncertainties in the domestic and external economic environment. The goal also leaves room for structural adjustments, risk prevention, and reform while enabling local governments to set region-specific targets and encouraging society to focus on high-quality development, Shen added.

China aims to achieve GDP growth of 4.5 percent to 5 percent in 2026, create more than 12 million new urban jobs, keep consumer price increases at around 2 percent, ensure grain output reaches 700 million metric tons, and cut carbon dioxide emissions per unit of GDP by about 3.8 percent, according to the government work report submitted today to the fourth session of the 14th National People’s Congress for review.

To meet these goals, China will maintain a more proactive macroeconomic policy this year, including keeping the fiscal deficit ratio at a relatively high level of around 4 percent, similar to last year. Fiscal expenditure is budgeted to reach a record CNY30 trillion (USD4.3 trillion), according to the report.

The external environment remains highly uncertain, and domestic aggregate demand still has a shortfall, Chen Changsheng, deputy director of the State Council Research Office, said at the same press conference. As a result, China needs to strengthen policy adjustments and use the certainty of macroeconomic policy to respond to external uncertainties, he said.

China also has sufficient policy space to introduce stronger stimulus measures if necessary, Chen added. From an international perspective, China’s government debt ratio -- particularly that of the central government -- remains relatively low, while monetary policy still has room for adjustments such as cuts to the reserve requirement ratio and interest rates.

Editors: Dou Shicong, Emmi Laine