China targets 2023 GDP growth of around 5%

China set a modest target for economic growth this year of around 5% on Sunday as it kicked off the annual session of its National People's Congress (NPC), which is poised to implement the biggest government shake-up in a decade, Report informs via Reuters.

The economy gave one of its weakest performances in decades last year, when gross domestic product (GDP) grew by just 3%, squeezed by three years of COVID controls, a crisis in the vast property sector and a crackdown on private enterprise.

In his work report, outgoing Premier Li Keqiang stressed the need for economic stability and expanding consumption, setting a goal to create around 12 million urban jobs this year, up from last year's target of at least 11 million, and warned that risks remain in the real estate sector.

Li set a budget deficit target at 3.0% of GDP, widening from a goal of around 2.8% last year.

"Global inflation remains high, global economic and trade growth is losing steam, and external attempts to suppress and contain China are escalating," Li said during his speech to open the parliament, which will run through March 13.

"At home, the foundation for stable growth needs to be consolidated, insufficient demand remains a pronounced problem, and the expectations of private investors and businesses are unstable," he said.