Debate Over China's GDP Growth Target

China's GDP growth target unveiled on Sunday has sparked debate about the outlook for the economy, with some projecting stronger growth for 2023 but others expressing caution about a speedy recovery.

In his government work report, Premier Li Keqiang projected a 5 percent growth in the economy this year, up from a 3 percent increase in 2022.

Cao Heping, an economist from Peking University, called the GDP growth target "a little bit conservative", saying it hasn’t taken all factors into account.

"It should’ve been higher. Six percent or 6.5 percent could have been realised as well," he said.

"I think 5 percent leaves quite a few spaces for policy adjustment. A large chunk of projects, and a sum of consumption expectations, have not been realised."

The academic also expressed confidence that the easing Covid situation on the mainland will boost domestic demand and consumption.

But a China analyst with Global Source Partners, Andrew Collier, described the 5 percent target as ambitious as the nation is still grappling with lingering effects of the pandemic.

"China’s growth is likely to be less than that. People have just spent several years in lockdown, many of whom lost their jobs. And the global economy has slowed over the last couple of years, meaning that trade is going to be hurt," he said.

"So the idea of some sort of huge growth spur occurring at the end of the year is highly unlikely,” he said.