Beijing: Amid the Trump’s trade tariff war, China on Thursday lowered its GDP target to 4.5 to 5 per cent for this year. The Dragon also lowered its growth projections due to the geopolitical tensions such as US-Israel-Iran military war and the slump in the Chinese property market and country’s own unemployment crisis.
Why China lowered its GDP target
Chinese Premier Li Qiang announced the GDP target in his work report presented to the annual National People’s Congress (NPC). For the last three consecutive years, Beijing had set a five per cent target for the GDP amid growing domestic economic challenges. However, it lowered to 4.5 per cent to 5 for the first time this year.
China recorded a growth rate of 5 per cent last year to USD 20.01 trillion as its exports surged despite US tariffs. The country’s domestic consumption has remained sluggish over the recent years.
Chinese Parliament opened on Thursday and is being attended by President Xi Jinping and over 2,000 deputies.
While presenting his work report in the Parliament, Premier Li said the government targets an economic growth of 4.5 per cent to 5 per cent this year.
China has set three major targets for development:
- A surveyed urban unemployment rate of around 5.5 per cent
- Aims to create over 12 million new urban jobs
- Increase in consumer price index of around 2 per cent
Li said China will work on boosting domestic consumption and implement an income growth plan for urban and rural residents.
Beijing is set to take these measures to boost domestic consumption
Special initiatives to paid in advance to bolster consumption
With a focus on earnings of low-income groups, a range of practical measures will be rolled out
Increase property income
Refine the remuneration and social security systems in 2026.