CHINA’S economy needs to grow by about 5% in 2024 to signal that the nation’s development is stable and healthy, a former Chinese central bank official said.

“An around 5% growth next year is necessary for China, and it is possible to achieve,” said Sheng Songcheng, a former director of the People’s Bank of China’s statistics and analysis department.

Sheng’s remarks come as the world’s second-largest economy looks likely to secure growth for 2023 of around that amount, too, in line with an official target set earlier this year.

Stronger-than-expected third quarter data published last week bolstered those expectations, with officials saying they were “very confident” the country would hit the goal.

Achieving that growth rate next year will be more difficult, though, as the ongoing housing weakness remains a drag.

“The rebound seen in the third quarter will not be short-lived,” Sheng said.

He added that the economy may keep improving gradually, citing recovering growth in aggregate financing to the real economy, a leading indicator gauging credit demand and the impact of monetary and fiscal policy.

Sheng is one of several government-linked economists floating an ambitious growth target for 2024 — likely meaning more reliance on fiscal stimulus in the new year given weakness in the housing market.

“I think 5% is a very good number because 5% is actually pretty high given the current situation, that means certain reforms have to be done to reach 5%,” Li Daokui, a former member of the central bank’s monetary policy committee, said. (SD-Agencies)