China | Understanding 2024 Government Work Report

Summary

We summarized and highlighted the main takeaways of Premier Li Qiang's 2024 Government Work Report which was presented in the "two sessions" in March 2024.

Key points

• Key points:
• GDP growth target for 2024 is set to be at “around 5%” and other economic targets such as inflation, employment, M2, household income growth, carbon reduction etc. are also promulgated.
• Expansionary fiscal policy to support growth recovery and reverse market sentiments., including 3% fiscal budget deficit, RMB 1 trillion special government bond and RMB 3.9 trillion special-purpose local government bond issuance.
• Monetary policy will continue expansionary to support growth, and the aggregate financing cost (the policy rate) is expected to further decline.
• The report also highlights to promote “New Quality Productivity” and “Chinese style modernization”.
• The government will also continue high-level reform and opening-up policy, particularly to support international trade and attract FDI inflows guiding them to the high-end manufacturing and green economy.

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