China Sets Lowest Economic Growth Target Since 1991 Amid Structural Challenges

The Chinese government has officially lowered its annual economic growth target to a level not seen in over three decades, signaling a more cautious outlook for the world's second-largest economy. This move follows a previous reduction to 'around 5%' in 2023, reflecting ongoing structural challenges and a strategic shift toward sustainable expansion. Analysts suggest that this conservative stance highlights the government's priority on quality growth over rapid, debt-fueled development. The announcement has triggered bearish sentiment across global markets, particularly affecting commodity-linked currencies and industrial metals. Investors are now closely monitoring trade-proxy currencies like the AUD and the performance of the Hang Seng Index (HSI) as demand expectations soften. Overall, the target underscores Beijing's commitment to managing financial risks even at the cost of slower headline growth.