New Five-Year Plan Prioritizes Stability and Domestic Demand
China's annual Two Sessions concluded this week with a clear roadmap for the 15th Five-Year Plan (2026–2030), emphasizing technological innovation and high-quality development. The National People's Congress (NPC) session on March 5 revealed a GDP growth target of 4.5% to 5% for 2026, building on 2025's 5% expansion that pushed the economy to 140.19 trillion yuan ($20.4 trillion).
Employment and Fiscal Priorities Take Center Stage
The government work report outlined plans to create over 12 million urban jobs while maintaining a 5.5% unemployment rate. A proactive fiscal policy will see a 4% deficit-to-GDP ratio, with public budget expenditure surpassing 30 trillion yuan to stimulate domestic consumption – now accounting for over half of economic growth.
Structural Shifts Reshape Economic Model
Policymakers are accelerating the transition from export-led growth to consumer-driven expansion, with service sector development and household income growth identified as key drivers. This strategic pivot comes as China navigates global economic headwinds while maintaining price stability targets of 2% CPI growth.
