GDP growth on track to be around 5%

China's economy is on track to achieve its annual growth target of around 5 percent this year, as the country is set to launch a series of reform measures to boost economic growth in the remainder of the year, said a renowned economist.

"I'm quite optimistic about China's economic prospects this year," Li Daokui, director of Tsinghua University's Academic Center for Chinese Economic Practice and Thinking, said in an exclusive interview with China Daily on Monday. "I believe the preset annual growth target of around 5 percent is achievable."

Li's remarks came after the recently concluded third plenary session of the 20th Central Committee of the Communist Party of China adopted a resolution on further deepening reform in a comprehensive fashion to advance Chinese modernization.

As the country is set to roll out a slew of targeted measures to implement the reforms mapped out in the resolution, Li said he expects to see gradual stabilization in prices and recovery in confidence among businesses, investors and consumers.

Although China's broader economy is still facing headwinds and challenges, he said deepening reforms comprehensively will help tackle the issues and inject new impetus into the economy.

"A package of measures is needed to defuse local government debt risks, boost consumer confidence and stabilize the real estate sector."

As the high local debt load has become a key issue dragging on China's economic growth, he suggested that the central government should issue more treasury bonds to replace local government debt, which will help boost domestic demand and create a favorable environment for further deepening reforms.

On the consumption front, he said it is advisable for the government to issue consumption coupons worth 1 trillion yuan ($137 billion) during the weeklong National Day holiday in October this year, which will significantly boost consumer sentiment.

With the resolution adopted during the plenary session having shed light on market-oriented reforms and further efforts to tackle structural issues, Li said China is likely to roll out more targeted measures to deal with the challenges and dispel any possible doubts on the future prospects of the world's second-largest economy.

According to the resolution, the country will move faster to establish a housing system that supports both home rentals and purchases, and foster a new development model for the real estate sector.

Li said he believes the real estate sector will continue to serve as a "pillar industry" over the next 15 to 20 years, as around 350 million people — including those now living in rural areas and migrant workers living in cities — will likely buy residential properties in cities in the future.

"Despite the oversupply of housing due to excess construction in the short term in certain regions, the overall real estate market is expected to rebound and return to a growth path in a year-and-a-half to around two years," Li said.