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Thu, 05 Mar 2026

Thu, 05 Mar 2026 China sets lowest economic growth target since 1991

It is also the first time the target has been lowered since it was cut to "around 5%" in 2023.
China has set its lowest annual economic growth target since 1991 at 4.5-5% due to challenges at home and abroad. This is a decrease from previous targets, with the exception of 2020 when no target was set due to the pandemic. The new target gives China "more room to manage the economy" without making huge financial commitments. China's leaders have outlined their objectives under the 15th Five Year Plan, including investments in innovation, high-tech industries, and scientific research. They aim to reduce reliance on exports by boosting household consumption. The plan includes over 100 major projects to expand China's industrial capacity, with a focus on science and technology, transportation, and energy. China also plans to lead a green energy push, reducing carbon emissions and improving environmental protection. China faces challenges such as an ageing population, falling birth rates, and a property crisis that has weakened domestic consumption. The country is also dealing with global trade tensions and an energy crunch due to the Iran war. Analysts say China's new growth target reflects its efforts to be realistic in the face of complex domestic challenges and a difficult global trade environment. However, some experts warn that other data suggests a weaker economic picture. China has become reliant on exports to plug gaps, making it vulnerable to US tariffs. The country is transitioning to renewable energy and aims to reduce its dependence on fossil fuels.