China’s 4th session of the 14th CPPCC National Committee was held in Beijing on Thursday, during which the country announced that its GDP growth target for this year will be 4.5% to 5%.
In his government work report, Premier Li Qiang said China will continue to implement a moderately accommodative monetary policy this year. The main targets include creating more than 12 million new urban jobs; keeping the surveyed urban unemployment rate at around 5.5%; holding the increase in the consumer price index (CPI) at around 2%; keeping growth in residents’ income in line with economic growth; maintaining a broadly stable balance of payments; achieving grain output of about 1.4 trillion jin (700 million tons); and reducing carbon dioxide emissions per unit of GDP by around 3.8%.
The deficit-to-GDP ratio is set at 4%, with the deficit reaching RMB 5.89 trillion (US$854 billion), an increase of about RMB 230 billion (US$33.4 billion) from last year. The scale of general public budget expenditures will, for the first time, reach RMB 30 trillion (US$4.35 trillion), an increase of about RMB 1.27 trillion (US$184 billion) from the previous year.
As for the key economic growth target, Li said China’s growth target for this year is 4.5% to 5%. According to Bloomberg, this is the most conservative economic growth forecast since 1991.
Li noted that the growth target was set mainly because this year marks the start of the 15th Five-Year Plan (2026-2030) period, making it necessary to guard against risks and leave room for reforms, thereby laying a foundation for better development in later years.
He also said that “the GDP growth target broadly aligns with the 2035 long-term goals and is basically consistent with the economy’s long-term growth potential. The conditions for achieving this target are favorable. Regions should combine this with their own realities and strive for good results through solid work.”
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