China NPC: Work report delivers on key market expectations – UOB Group

The third annual session of the 14th National People's Congress (NPC) is held in Beijing on 5-11 Mar. The key economic targets announced by Premier Li Qiang at the opening of the NPC were largely in line with expectations as China emphasizes high quality growth led by domestic demand and technological innovation to navigate a more challenging external environment, UOB Group's Economist Ho Woei Chen notes.

China sets its GDP growth target at around 5% for 2025

"The key economic targets announced by Premier Li Qiang were largely in line with expectations as China emphasizes high quality growth led by domestic demand and technological innovation to navigate a more challenging external environment."

"China sets its GDP growth target at around 5% for 2025, the same as the past two years. The CPI growth target is set lower at around 2% for 2025 while the fiscal deficit target is raised to around 4% of GDP. China will increase the issuance of ultra-long-term special treasury bonds and special local government bonds this year, though the CNY1.3 tn in ultra-long-term special treasury bonds for 2025 came below our expectation."

"The NPC agenda of note includes the press conferences on economic topics (6 Mar), foreign affairs topics (7 Mar) and people's livelihood topics (9 Mar) before it concludes on 11 Mar."