China has reduced its annual economic growth target to a range of 4.5%–5%, marking the country’s lowest expansion goal since 1991 as it navigates mounting economic pressures at home and abroad.
The adjustment is the first reduction since the target was set at “around 5%” in 2023. No growth target was announced in 2020 due to the COVID-19 pandemic.
The new figures were unveiled during China’s major annual political gathering, known as the “two sessions”, where officials also shared early details of the 15th Five-Year Plan for the world’s second-largest economy.
Beijing is attempting to reshape its economic structure while facing a series of challenges, including weak consumer spending, a shrinking population, a prolonged property crisis, global trade tensions, and energy disruptions linked to the Iran war.
Analysts say the lower target provides policymakers with greater flexibility.
One China analyst told the BBC that the reduced range gives Beijing “more room to manage the economy” without being compelled to commit massive financial resources simply to meet a rigid target.
The “two sessions” gathering, which began on Wednesday and typically lasts more than a week, brings together China’s top leaders for a series of policy discussions.
In a 46-page report presented to delegates, Premier Li Qiang outlined priorities for the upcoming five-year plan, which will guide the country’s development strategy through 2030. The full plan will be voted on before the meetings conclude and is expected to be released by state media shortly afterwards.
Li said the strategy would prioritise innovation, high-tech industries, scientific research, and stronger household consumption, highlighting Beijing’s concerns that the economy is too dependent on exports.
The plan also proposes more than 100 major projects aimed at expanding China’s industrial capacity in sectors such as science and technology, transportation, and energy.
Beijing has also emphasised its ambition to become a global technology powerhouse, including expanding the use of artificial intelligence across key industries and accelerating its green energy transition.
At the same time, the government says it will work to build a “childbirth-friendly society” to address falling birth rates and the challenges posed by an ageing population.
Despite these efforts, economists remain cautious. Some analysts say China’s official growth figures should be viewed “with a grain of salt”, pointing to weak consumer spending and the ongoing property sector crisis as persistent risks to the country’s economic outlook.