REGULATORY · MARKET STRUCTURE · CHINA
China lowers annual economic growth target range
Change
On 5 March, China cut its annual economic growth target to a range of 4.5%–5%, its lowest expansion goal since 1991.
Why Now
China set its annual economic growth target as a range of 4.5%–5%. The excerpt states this is the lowest expansion goal since 1991. It also states the target had previously been cut to “around 5%” in 2023, and that no target was set in 2020 due to the pandemic. The target and related details were released during the “two sessions” gathering, alongside some details of the 15th Five Year Plan. An analyst quoted in the excerpt said the lower target gives China more room to manage the economy without being forced into large financial commitments to hit a precise goal.
Impact
- • China’s official annual growth target is now set at 4.5%–5% (range-based).
- • The target is described as the lowest since 1991.
- • The target was announced in conjunction with the “two sessions” and details of the 15th Five Year Plan.
Who Recalculates
- • National economic policymakers
- • Macroeconomic forecasters and analysts
- • Businesses using official growth targets for planning
Source
Topics
World & Politics Policy & Regulation Business & Markets Economy