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Presenting the annual work report, Chinese Premier Li Qiang said the government will aim for growth between 4.5% and 5% this year and will strive for better results in practice.
China’s latest growth target signals one of the most cautious economic outlooks in recent years.
China on Thursday lowered its economic growth target to a range of 4.5-5 per cent for 2026, reflecting rising external uncertainties from US trade tariffs, the fallout of the US-Iran conflict and persistent weaknesses in its domestic economy, including a prolonged property market slump and high unemployment. The target marks the lowest official growth guidance since Beijing began announcing such projections in the early 1990s.
The new target was announced by Chinese Premier Li Qiang in his government work report presented to the annual session of the National People’s Congress (NPC), China’s parliament, which opened on Thursday. President Xi Jinping attended the session along with over 2,000 delegates.
Growth target lowered for the first time in years
China had maintained a growth target of around 5 per cent for the past three years despite mounting economic challenges. This year marks the first time the government has formally lowered the target to a 4.5-5 per cent range.
The moderation underscores the leadership’s caution as the world’s second-largest economy grapples with slowing domestic demand, a struggling property sector and uncertainty in global trade.
China’s economy expanded by about 5 per cent last year, reaching roughly USD 20.01 trillion. The growth was largely supported by strong exports despite US tariffs, while domestic consumption remained weak.
Key economic targets for 2026
Presenting the annual work report, Li said the government will aim for growth between 4.5 per cent and 5 per cent this year and strive for better results in practice.
Other major economic targets include a surveyed urban unemployment rate of around 5.5 per cent and the creation of more than 12 million new urban jobs. Authorities also aim to keep consumer price inflation at about 2 per cent.
The government also pledged to maintain stable grain output of around 700 million tonnes and reduce carbon dioxide emissions per unit of GDP by about 3.8 per cent.
Measures to boost domestic consumption
Addressing weak domestic demand, Li said the government will introduce measures to boost consumption and raise household incomes.
These include plans to increase earnings for low-income groups, expand property-related income and improve wage and social security systems.
To support consumption, the government will allocate 250 billion yuan (about $36.17 billion) through ultra-long special treasury bonds for consumer goods trade-in programmes. A special fiscal-financial coordination fund of 100 billion yuan will also be created to stimulate domestic demand.
Annual political gathering amid global tensions
The NPC session comes as China enters its annual “two sessions” political meetings, which also include the advisory body Chinese People’s Political Consultative Conference (CPPCC).
The gatherings come at a time of global uncertainty, including the ongoing US-Iran conflict and trade tensions with Washington.
Xi, 72, who is serving an unprecedented third term as China’s leader, attended both the CPPCC opening meeting on Wednesday and the NPC session on Thursday, alongside senior leaders of the ruling Communist Party of China and members of the military.
His appearance drew attention as it followed recent high-profile purges within the Chinese military.
Most cautious outlook since pandemic year
China’s latest growth target signals one of the most cautious economic outlooks in recent years. Analysts note that the government had last avoided setting a numerical growth target in 2020 when the economy was severely disrupted by the COVID-19 pandemic.
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March 05, 2026, 10:09 IST
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