China sets a lower economic growth target of 4.5% to 5% for 2026 as challenges loom

China has set an economic growth target of 4.5% to 5% for this year, a slight decrease in the face of a prolonged property slump and other headwinds and uncertainty abroad.The target was announced on Thursday in an annual report being presented by Premier Li Qiang at the opening session of this year’s meeting of the National People’s Congress. The report set the goal and added “while striving for better in practice.”

The target was lowered from about 5% in each of the last three years. The economy grew 5% in 2025. Setting a range of 4.5% to 5% gives the government more leeway to adjust policies this year.
Also Read: US AG Pam Bondi subpoenaed by House Panel to testify on Epstein filesThis year’s meeting of the 3,000-strong rubber-stamp legislature will also endorse a five-year plan setting policy priorities until 2030.

“In proposing these targets, we have considered the need to leave some room for structural adjustments, risk prevention, and reform in the opening year of this five-year plan period, so as to lay a solid foundation for delivering better performance in the coming years,” the report said.

It included pledges to build a stronger domestic economy while also furthering Chinese leader Xi Jinping’s ambitions to build China into a global leader in technology.