China trims economic growth goal for 2026

Beijing: China on Thursday lowered its GDP growth target to 4.5–5 per cent for this year amid global uncertainties, including US President Donald Trump's tariff war and the worsening international crisis following the US-Iran conflict, along with domestic economic headwinds such as the property market slump and rising unemployment.

The target, slightly lower than recent years, was announced by Chinese Premier Li Qiang in his work report at the opening of the annual National People's Congress (NPC), the country's parliament. China had set a five per cent GDP target for the past three years, but this year marks the first time it has been reduced to a 4.5–5 per cent range.

China's economy grew 5 per cent in 2025 to USD 20.01 trillion, supported largely by strong exports despite US tariffs, while domestic consumption remained sluggish. The opening session was attended by President Xi Jinping and over 2,000 deputies. In his report, Li said the government will strive to achieve the growth target and pursue better results in practice.

Other key targets for 2026 include maintaining the urban unemployment rate at around 5.5 per cent, creating over 12 million new urban jobs, and keeping the consumer price index rise at around 2 per cent.

Li also highlighted plans to increase personal income in line with economic growth, maintain stable grain output of around 700 million tonnes, ensure basic balance in payments, and reduce carbon dioxide emissions per unit of GDP by about 3.8 per cent.

To boost domestic demand, China will implement measures to raise incomes, particularly for low-income groups, increase property income, and improve remuneration and social security systems.