China has projected economic growth of 4.5-5 percent for 2026. The lowest growth target since 1991. China has lowered its annual economic growth target to a range of 4.5 percent to 5 percent as it grapples with challenges at home and abroad.

Premier Li Keqiang unveiled some details of the 15th Five-Year Plan at the opening session of the annual meeting of the National People's Congress on Thursday. The same meeting set a GDP target of 4.5 to 5 percent for 2026. In 2025, the target was 5 percent.

The reduced economic growth rate also reflects China's economic slowdown, Al Jazeera reported. At one time, the contribution of the real estate sector to China's GDP was 25 to 30 percent. Now The economic slowdown is said to be due to the collapse of the real estate sector.

Tianchen Su, a China economist at the Economist Intelligence Unit, said, "This growth target is very realistic." He said the data reflects China's tendency towards more conservative or cautious expectations.

It is the first time since the 2023 economic growth target was lowered to 'around 5 percent'. In 2020, no target was set due to the pandemic.

Beijing is aiming to reshape its economy, which is grappling with problems such as weak consumption, a shrinking population,  a housing crisis, global trade tensions and an energy crisis caused by the Iran war.

Beijing has also made clear its ambitions to become a global tech powerhouse, with plans to deploy artificial intelligence (AI) tools in key industries. China's goal is to lead the green energy  campaign, reduce carbon emissions and improve environmental protection.