China Sets Lowest Growth Target Since 1991 As Old Model Falters

In a significant shift reflecting its economic challenges, China has set its lowest growth target since 1991, aiming for a modest range of 4.5% to 5% for the upcoming year. This target, revealed in an annual work report obtained by Bloomberg News, underscores the difficulties faced by the world's second-largest economy as it navigates a post-COVID recovery amid persistent domestic and global headwinds. Key factors contributing to this cautious forecast include a decline in exports, sluggish domestic demand, and an ongoing property sector crisis. Analysts suggest that this lower growth target indicates a departure from China's previous high-growth model, which has been unsustainable in the current economic climate. The Chinese government is now likely to focus on stabilizing the economy and promoting sustainable growth rather than pursuing aggressive expansion. This development has implications not only for China but also for global markets, as the nation plays a crucial role in international trade and economic dynamics. Investors and policymakers will be closely watching how the Chinese government plans to address these challenges and support economic recovery in the coming months.