China has set its economic growth target for 2026 at 4.50% to 5%, the lowest level on record.
The guidance for gross domestic product (GDP) growth this year comes as China faces deflationary pressures and ongoing trade tensions with the U.S.
The 2026 target is a downgrade from the 5% growth set in each of the past three years, and is the most modest goal on record for the world’s second largest economy after the U.S.
Additionally, the Chinese government in Beijing maintained its budget deficit target at “around 4%” of GDP.
The 4% deficit target, first set last year, remains the highest on record for China. The previous high was 3.6% set in 2020 during the Covid-19 pandemic.
China has also maintained its annual inflation target this year at 2%, which is the lowest level in more than two decades and comes amid weak domestic demand.
The government in Beijing has acknowledged several issues facing the Chinese economy, including a changing international trade and economic environment.
In response, China plans to issue $188.5 billion U.S. in long-dated treasury bonds this year and has pledged stimulus measures throughout 2026 to help boost the economy.
China’s economy grew an annualized 5% during 2025.
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