China is projecting its economy to grow by around 5 percent this year.

That's higher than the 3 percent GDP increase in 2022 as the economy was hit by Covid-19.

Among the other targets set for this year are keeping inflation to 3 percent and the creation of 12 million urban jobs, according to Premier Li Keqiang as he delivered his final government work report on Sunday marking the start of the National People's Congress session.

Addressing delegates at the Great Hall of the People in Beijing, the premier spoke about efforts to maintain economic stability in a challenging 2022.

"Overcoming great difficulties and challenges, we succeeded in maintaining overall stable economic performance," Li said.

"Amid a complex and fluid environment, we were able to generally accomplish the main targets and tasks for the year. Such achievements are a testament to the tremendous resilience of China's economy."

The premier said China still faces difficulties and challenges both externally and internally.

"Global inflation remains high, global economic and trade growth is losing steam, and external attempts to suppress and contain China are escalating.

"At home, the foundation for stable growth needs to be consolidated, insufficient demand remains a pronounced problem, and the expectations of private investors and businesses are unstable."

On the way forward, Li stressed the need to boost domestic demand.

"We should give priority to the recovery and expansion of consumption. The incomes of urban and rural residents should be boosted through multiple channels... We should see that government investment and policy incentives effectively drive investment society-wide."

Military spending, meanwhile, will go up by 7.2 percent in 2023, up slightly from 7.1 percent last year.

That's the eighth year in a row the defence budget will maintain single-digit percentage growth.

"Our national defence mobilisation capability was boosted," according to the government work report. "With these efforts, we fully safeguarded China's sovereignty, security, and development interests."

The report also said the country's armed forces should work to carry out military operations, boost combat preparedness and enhance military capabilities. (Additional reporting by Xinhua)
_____________________________
Last updated: 2023-03-05 HKT 12:10