BEIJING: After parliament set a modest target for the world's No. 2 economy to grow by about 5% this year, the vice chairman of the state planner said on Monday that China was confident of achieving its 2023 growth target as consumption has accelerated.

As the annual session of the National People's Congress got underway in Beijing on Monday, domestic stock indexes opened with a downbeat tone after outgoing premier Li Keqiang did not set China a more ambitious growth target this year.

Last year, when GDP grew just 3%, China's economy put in one of its weakest performances in decades. This was due to COVID-19 controls that were too strict, the housing crisis and the crackdown on private enterprises.

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Zhao Chenxin, a deputy head of the National Development and Reform Commission (NDRC), said at a press conference on Monday that the mobility of people and goods is accelerating as a result of changes in COVID prevention and control policies.

Since the Lunar New Year, the consumption sector has been boosted by significant improvements in tourism, catering and retail sales, he said. This has helped the economy get off to a strong start.

Zhao said the Chinese economy is "steadily improving" and he is "confident" in achieving the 2023 economic growth target.

According to the statement, "The approximately 5% target is consistent with current economic momentum ... and will help all parties focus on improving the quality and efficiency of economic growth."

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Meanwhile, the administration will "coordinate development and security and appropriately address risks related to property, finance and local government debt," Zhao said.

Analysts noted that this year's work report highlighted the government's concerns over a slowing global economy, local government debt and sustainable issues in the real estate sector more prominently than in previous years.

As analysts at Nomura noted in a note, "On the key tasks for the new year, the Government Actions Report spent an entire section on emphasizing how to effectively prevent and mitigate major economic and financial risks, which It was not specifically discussed in last year's Government Work Report.

Another deputy premier, Li Chunlin, reiterated that China had experienced a good harvest, hog production capacity was abundant, and that energy security was strong.

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He acknowledged that food and energy costs have increased in other markets and could happen in China as the country moves out of zero-COVID policies.

With China's urban employment rate falling for the first time in six decades in 2022, steps to raise the country's employment rate were also prominently discussed.

According to Li, the target for this year is roughly 12 million. "Last year we set a target of 11 million new jobs, and we actually created 12 million," he said.

According to Zhou Hao, an economist at Guotai Junyan International, the increased target of job creation highlights the importance of consumption in maximizing long-term growth potential.

The high target "clearly shows that the government pays more attention to the quality of development," Zhou notes.