China sets this year's growth target at 4.5–5%, lowest in 35 years

The People's Republic of China (China) has lowered its economic growth target for this year to 4.5–5%. This is the lowest level in 35 years, since 1991, when Beijing emphasized stability in the aftermath of the 1989 Tiananmen Square protests and massacre.
Li Qiang, premier of the State Council of the People's Republic of China, announced at the opening session of the 4th meeting of the 14th National People's Congress of the People's Republic of China (14th NPC), held on the 5th at the Great Hall of the People in Beijing, that this year's Gross Domestic Product (GDP) growth target has been set at 4.5–5%. This is lower than the "around 5%" target maintained over the past three years. Excluding 2020, when no growth target was set due to the spread of Coronavirus disease 2019 (COVID-19), it is effectively the lowest target since 1991.
China has gradually lowered its growth targets during the post-COVID-19 recovery phase. In 2022, it set a target of 5.5%, but actual growth reached only 3.0%. It then set targets of around 5% for three consecutive years in 2023, 2024, and 2025, and reported actual growth rates of 5.2%, 5.0%, and 5.0%, respectively.
This year's lower target is seen as reflecting not only domestic economic challenges such as the property market slump, weak consumption, and youth unemployment, but also external factors including tariff pressure from the United States of America (US) and controls on advanced technology. Li Qiang stated, "We will coordinate development and security and implement more proactive and effective macroeconomic policies," adding, "We will expand domestic demand and optimize the supply structure, while fostering new drivers of growth."
km@fnnews.com Reporter Kim Kyung-min Reporter