Beijing has disappointed investors who were hoping for an announcement of more stimulus measures. Analysts say its 5% growth goal for 2024 is highly optimistic.
China on Tuesday expressed certainty it could meet its development goals for 2024 without another stimulus package, despite a sluggish economy.
“We are fully confident in achieving the goals of economic and societal development for the year,” said Zheng Shanjie at a news conference. Zheng is the head of China’s National Development and Reform Commission, and thus the country’s top economic planner.
Zheng disappointed investors, however, by not announcing further measures to drive economic growth like he did last month.
Little optimism for property sector
China’s economy has been drastically slowing in recent years, affected by decreasing consumption, local government debt, and a major housing crisis.
Although last month’s measures were mainly targeted at making it easier for middle-class Chinese families to buy homes, analysts still believe the country’s 5% growth target is too optimistic.
Beijing’s central bank has cut interest rates on mortgages and lowered the amount of money lenders must keep on hand. However, experts have warned more substantial reforms are needed if China wants to boost its property sector following the downfall of development firms like Evergrande.
