By Blessing Nweke
China has lowered its annual economic growth target to between 4.5% and 5%, marking the country’s lowest expansion goal since 1991 as it navigates a series of economic and geopolitical challenges.
The announcement came during the country’s annual political gathering known as the Two Sessions, where leaders outlined policy priorities and economic plans for the coming years. The new target represents the first reduction since Beijing set its growth goal at “around 5%” in 2023. No target was issued in 2020 due to the COVID-19 pandemic.
In a 46-page government report presented to delegates, Chinese Premier Li Qiang detailed elements of China’s upcoming 15th Five-Year Plan, which aims to reshape the world’s second-largest economy.
Li said the plan would prioritize investment in innovation, high-tech industries and scientific research, while also increasing efforts to boost domestic consumption. Officials view weak household spending as a major vulnerability that leaves the economy overly dependent on exports.
The report also outlines more than 100 major projects focused on expanding China’s industrial capacity in sectors such as technology, transportation and energy. Beijing additionally plans to accelerate its transition toward renewable energy and strengthen environmental protections.
China’s leaders also pledged policies aimed at creating a “childbirth-friendly society” and improving employment, education and healthcare as the country grapples with an ageing population and declining birth rates.
Recent data illustrates the pressures facing the economy. While China achieved its 5% growth target for 2025 overall, economic expansion slowed to 4.5% in the final quarter amid weak domestic spending and a prolonged property sector crisis.
Analysts say the lower target reflects a more cautious outlook. Zhou Zheng of China Macro Group said the government was “being realistic” as it deals with complex structural challenges and global trade tensions.
Researchers also warn that problems in the real estate sector—once accounting for nearly a third of the economy—continue to weigh heavily on consumer confidence and local government finances.