China sets 4.5–5% growth target for 2026, prioritises high-quality development

BEIJING: China has set an economic growth target of 4.5 to 5 percent for 2026, a range officials say balances ambition with realism while keeping the focus on high-quality development.

Speaking on Thursday, Shen Danyang, head of the group responsible for drafting the government work report, said the target was designed to align economic needs with practical feasibility. The report was submitted earlier in the day to the National People's Congress for deliberation.

Shen described the goal as “proactive and pragmatic,” noting that it reflects a comprehensive evaluation of China’s domestic economic conditions and evolving global challenges.

He explained that the growth range also allows space for structural adjustments, risk prevention, and reforms while remaining consistent with the country’s long-term development vision for 2035. The flexibility of the target will also help local governments set region-specific goals and respond to a more complex international environment.

According to Shen, many economic institutions, economists and think tanks in China and abroad have produced growth estimates broadly consistent with the government’s projections. If achieved, the target would still rank among the highest growth rates among major global economies, he added.

China’s economic resilience, the rise of new quality productive forces, more proactive macroeconomic policies and deeper structural reforms are expected to further unlock the country’s development potential.

“As long as we fully utilise favourable conditions, we can strive for better results and achieve both improved quality and reasonable growth in quantity,” Shen said.

Meanwhile, Chen Changsheng, another member of the government work report drafting team, said China plans to strengthen policy support this year amid rising external uncertainties and a domestic economic pattern marked by strong supply but relatively weak demand.

He noted that China still has room for further policy action. Compared with other major economies, the country’s government debt ratio—particularly that of the central government—remains relatively low, leaving scope for additional cuts in reserve requirement ratios and interest rates.

For the second consecutive year, the government work report has placed expanding domestic demand at the top of its policy agenda, with special initiatives aimed at boosting consumption.

Officials said measures under consideration include raising household incomes, upgrading supply, expanding healthcare, elderly care and childcare services, supporting consumer goods trade-in programmes, and removing restrictions that limit consumption.

These steps, authorities say, are intended to stimulate spending and sustain stable economic growth while advancing China’s shift toward higher-quality development.