China sets ambitious economic growth target of ‘around 5%’ for 2024, vows to ‘transform’ economy

China has set an ambitious economic expansion target of “around 5%“ for 2024, as its leaders vowed to “transform the growth model” in the face of significant challenges facing its development.

The figure — similar to last year’s growth target — was announced by Chinese Premier Li Qiang on Tuesday at the opening of the annual gathering of the National People’s Congress (NPC), the country’s rubber-stamp legislature, which draws nearly 3,000 delegates to Beijing for a week-long meeting.

“Stability is of overall importance, as it is the basis for everything we do,” Li said during the delivery of his maiden work report.

“Making progress is our goal, and it is also what motivates us,” he said. “In particular, we must push ahead with transforming the growth model, making structural adjustments, improving quality, and enhancing performance.”

Li’s proclamation comes as Beijing is seeking to boost confidence in China’s economy, while grappling with how to stabilize the troubled property sector, counter deflationary pressures, reverse a foreign capital exodus and save a battered stock market.

Li delivered the report to an auditorium filled with delegates inside the cavernous Great Hall of the People. Delegates clapped in unison in time with a military band serenade as top leadership entered the room in a line led by Chinese leader Xi Jinping, who had state media cameras trained on him as he sat at the center of top officials on stage.

The political heart of Beijing, where the event is taking place, was under heavy security ahead of the event, with barricades and traffic controls restricting access to the public square and surrounding government buildings.

At the event, China also unveiled its annual military budget for 2024, which will increase by 7.2% to 1.67 trillion yuan ($230.6 billion), according to the draft budget report released separately on Tuesday. The growth rate for the defense budget is the same as last year’s.

The gross domestic product (GDP) target and military spending are among the most closely watched figures during the opening day of proceedings.

The GDP target in particular is being closely monitored this year as China faces a raft of economic problems. The 5% target was widely expected by analysts ahead of the gathering, who said leaders would use the ambitious goal to signal they are committed to boosting China’s slowing economy and restoring confidence in its economic prospects