China will target economic growth of about 5 per cent this year, a rate described as “ambitious” by analysts, as the world’s second-largest economy battles challenges ranging from a property slowdown to weak investor confidence.

Premier Li Qiang, President Xi Jinping’s number two, announced a budget deficit of 3 per cent of gross domestic product and Rmb1tn ($138.9bn) in special government bonds in his first “work report” to the annual meeting of China’s rubber-stamp parliament on Tuesday.

“The foundation for the continuous recovery and improvement of our country’s economy is still not solid, with insufficient demand, overcapacity in some industries, weak societal expectations and many lingering risks,” Li told the nearly 3,000 delegates crowded into the Great Hall of the People in Beijing.