A Chinese economic analyst expressed confidence that China will achieve its GDP growth target of around 5 percent for 2024, despite an International Monetary Fund (IMF) report projecting a growth rate of 4.8 percent.
In the newly released World Economic Outlook on Tuesday, global economic growth is expected to remain "stable yet underwhelming," reaching 3.2 percent for 2024 and the following year.
During an interview with China Global Television Network (CGTN), Tu Jun, an economic analyst from the prestigious Shanghai Jiao Tong University, called this a "static situation during recovery."
"There are several issues. One of that is the global reorganization of the supply chain, or even the disruption of certain parts of it. For example, the rise of protectionism in international trade. Then, there are regional conflicts, for example, in Europe and the Middle East. Another issue is long-term oriented, which is the decline in total factor productivity, also known as TFP," said Tu.
With China recording a 4.8 percent GDP growth in the first nine months of the year, the final quarter will be crucial in reaching its "around 5 percent" growth target, Tu noted.
"I think it's still very possible for China's economic growth to be around 5 percent for 2024, especially since the first three quarters have reached an average of 4.8 percent. If we keep up with the various policies that the country has been implementing to promote, for example, infrastructure investment and consumption, in the last quarter, I think a 5 percent target can still be achieved," said Tu.
Tu emphasized that GDP growth shouldn't be considered as the only measure of a country's economic performance; other indicators like inflation, unemployment and total factor productivity should also be considered.
Tu further pointed out that China's low inflation rate provides ample room for the country to implement its monetary policies effectively.
Analyst confident about China's "around 5 pct" annual GDP growth target
