China able to achieve 2024 GDP growth target of around 5% as 3rd plenum injects new growth momentum: expert

There is full confidence that China will be able to achieve its full-year GDP growth target of around 5 percent in 2024, as the resolution on further deepening reform comprehensively to advance Chinese modernization adopted at the just concluded third plenary session of the 20th Communist Party of China Central Committee has injected fresh growth momentum to the economy, an expert said on Thursday.

China's economic growth rate is expected to reach around 5 percent in the second half of the year, and as a result, the economy is expected to achieve its pre-set annual target. This year, China's contribution to the world economy may still remain at a high level, casting itself as a key driver of the global economic recovery, Li Xuesong, director of the Chinese Academy of Social Sciences' Institute of Quantitative and Technological Economics, told the Global Times.

From now to 2035, the foundation supporting the high-quality development of China's economy remains solid, Li said at a seminar held in Beijing on Thursday, noting that China's economy is expected to maintain a significant growth potential over the period.

"The new technological revolution offers strategic opportunities for high-quality development. A robust industrial foundation provides continuous momentum. A vast market generates demand traction and the comprehensive guarantee of production factors offers solid support," he said.

Debunking some Western media outlets' smearing of China's economic prospects citing so-called disappearance of the demographic dividend, Li said the country's advantages in the quality and quantity of the labor force persist.

The working-age population remains sizable, contributing talent and labor to economic growth. In addition, continued improvements in the health and education level of labor force facilitate the rapid accumulation of demographic quality dividends. Third, new urbanization drives ongoing improvements in the distribution of labor in various regions, offering substantial potential for enhancing the efficiency of labor resource allocation, he said.

After China reported a steady 5 percent GDP growth for the first half of 2024, multiple international organizations and banks have maintained their forecast of 5 percent GDP growth for China this year, thanks to remarkable performances in areas such as exports, even as many major economies and the global economy as a whole face serious downward pressure.

Looking ahead, Li said China should foster the high-quality development by seeking major upgrades in three aspects. "We should leverage the advantages of the hyperscale market to drive demand expansion, enhance quality, and facilitate structural upgrading. In addition, we should accelerate the iterative process of supply and promote structural upgrading, while driving sustained efficiency enhancement and structural advancement," he said.

He called for efforts to boost the synergistic growth of traditional and emerging industries, and foster the development of new quality productive forces.

Li noted that the Chinese government has accorded paramount importance to the stable and healthy development of the real estate market, with a series of policy adjustments.

In addition to current policies, we can explore the establishment of specialized asset management agencies to take over and restructure certain real estate enterprises in the future, Li said.

China is a key driver of world economic growth. According to the IMF's research, every 1 percentage point increase in China's economic growth will lead to a 0.3 percentage point increase in the growth of other economies. As the world's second-largest economy, China has added important stability to the world economy, Li said.