China lowers economic growth target to 4.5-5% amid global, domestic uncertainties

China sets a lower GDP growth target of 4.5-5% amid global uncertainties and domestic economic challenges.

China on Thursday (March 5, 2026) lowered its GDP target to 4.5-5% for this year in the face of Donald Trump's trade tariff war, the worsening global crisis following the US-Iran war and headwinds in the domestic economy, owing to property market slump and unemployment crisis.

The target close to that of last year was announced by Chinese Premier Li Qiang in his work report presented to the annual National People's Congress (NPC), the country's parliament, which opened here on Thursday.

China has been setting a 5% target for the GDP for the last three years amid growing domestic economic challenges. This year, the target is lowered to 4.5% to 5% for the first time.

China's economy grew by 5% last year to $20.01 trillion, riding high on the robust exports despite U.S. tariffs, while domestic consumption, its bugbear, remained sluggish.

Thursday's opening session is being attended by President Xi Jinping and over 2,000 deputies.

Chinese President Xi Jinping and other leaders sing the national anthem during the opening session of the Chinese People's Political Consultative Conference (CPPCC), at the Great Hall of the People in Beijing, China, on March 4, 2026. | Photo Credit: Reuters