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China on Thursday set its GDP growth target for 2026 at 4.5% to 5% — the lowest target on record going back to early 1990s — according to a copy of the government work report seen by CNBC, as Beijing grapples with persistent deflationary pressures and trade tensions with the U.S.
That target marks a downgrade from the “around 5%” set in the past three years and the most modest goal so far for the world’s second largest economy, barring 2020 when Beijing did not set a growth target due to the pandemic.
Beijing also kept its budget deficit target unchanged from last year’s “around 4%” of GDP, as the National People’s Congress, the country’s top legislative body, holds its annual meeting this week.
The 4% deficit target first set in 2024 is the highest on record going back to 2010, according to data accessed via Wind Information. The prior high was 3.6% in 2020.
