China establishes the lowest economic growth rate since 1991

The government in Beijing has set an economic growth target of 4.5%-5% for 2026, the lowest since 1991, indicating that authorities accept a slower pace of the economy. The decision comes in the context of economic difficulties and the attempt to find more sustainable development models, after years of growth based on massive investments in real estate and infrastructure.

The Chinese economy has recently been supported mainly by exports, which significantly contributed to the approximately 5% growth from the previous year, while domestic consumption remains weak, and the real estate sector is in decline.

Authorities will maintain a budget deficit of about 4% of GDP to support the economy and aim to create over 12 million jobs, in a context marked by global economic uncertainties and deflationary pressures.