The Chinese Prime Minister warns that achieving the growth target will not be easy.

The Chinese Prime Minister, Li Keqiang, warned on Monday that it will be difficult for China to achieve its goal of around 5% growth this year, which is one of the lowest growth rates in decades for the world’s second largest economy.

During his first press conference since being appointed as prime minister, Chang said on Saturday, “I fear it may not be easy to achieve a growth target of about 5%, and it will require a lot of effort.”

This goal represents one of the lowest levels of gross domestic product growth in 40 years for the Chinese giant, although it is higher than most major economies.

In 2022, China witnessed a growth of only 3%, significantly lower than the targeted growth rate of 5.5%. This was largely influenced by health restrictions and the severe impact of the real estate crisis on economic activity.

For almost three years, the Chinese authorities relied on a strict health policy known as the “Zero Covid” policy to protect the population from the Covid-19 pandemic. While this policy was effective in preventing the spread of the virus, it dealt a significant blow to the economy. Production facilities and businesses were shut down, and mobility was restricted. These measures were lifted in December.

The growth in China has been affected by a crisis in the real estate sector, which along with construction represents more than a quarter of China’s total Gross Domestic Product (GDP).

The real estate sector has been struggling since 2020 with tighter conditions for real estate development companies to obtain loans, along with the adoption of measures to support credits for some developers.