Hong Kong’s Paul Chan says China’s 5% GDP goal is attainable

China’s GDP goal of 5% for 2024 is feasible, nevertheless it will not be simple to realize, Hong Kong’s monetary secretary instructed CNBC Tuesday after Beijing set a development goal of “round 5%” for this 12 months.

At its annual parliamentary assembly which kicked off Tuesday, China additionally set a deficit-to-GDP ratio of three% for the 12 months — down from a uncommon upward revision to three.8% late final 12 months from the unique 3%.

“China is a large economic system, given its measurement, 5% is a large quantity. I believe that is attainable, though it isn’t simple,” Hong Kong’s Monetary Secretary Paul Chan instructed CNBC’s Emily Chan, highlighting brilliant spots in China’s export sector and home consumption.

“ASEAN particularly is rising very quick, and the inhabitants is younger. So this represents additionally an enormous marketplace for China’s export,” Chan mentioned, including that “we anticipate the export state of affairs of the mainland will enhance significantly into creating Asia.”

China’s commerce with its main companions fell in 2023, with annual exports dipping for the primary time in seven years as demand for Chinese language items fell amid slowing world development.

The ten-member Affiliation of Southeast Asian Nations grouping was China’s largest buying and selling accomplice on a regional foundation in 2023, though it reportedly logged a 4.9% decline.

By nation, the U.S. remained China’s largest buying and selling accomplice final 12 months.

“As well as, China is attempting very arduous to stimulate home consumption, this would be the main engine of development as properly,” Chan mentioned.

In the beginning of the 12 months, Goldman Sachs mentioned it expects Chinese language client exercise to bounce again in 2024, led by leisure-related actions from on-line journey brokers to Macao casinos.

Final 12 months, China’s economic system grew 5.2% year-on-year, in keeping with the official goal of round 5%. Nonetheless, the general restoration from the pandemic was a lot slower than many anticipated.

Regardless of exterior uncertainties and geopolitical panorama, Chan mentioned he expects the Hong Kong economic system to “develop additional” this 12 months, on the again of a restoration in world demand as markets broadly challenge a reduce in rates of interest. Home consumption can also be a key driver for town’s development within the brief time period, mentioned the monetary secretary.

“Our consumption will proceed to develop with the advance within the connectivity and transport amenities with the mainland and the worldwide,” he mentioned.

Hong Kong’s GDP is projected to develop 2.5% to three.5% this 12 months.