China sets 5% as growth target, lower than last year
China has set a slower-than expected GDP growth target of 5% for this year. The target for last year was 5.5%, but actual GDP growth was only 3%, the second slowest since the 1970s, the Associated Press reported.
The government is aware of a weakening external market which may battle to absorb China's exports at higher levels.
Premier Li Keqiang, China's top economic officials, said, "Uncertainties in the external environment are on the rise. At home, the foundation for stable growth needs to be consolidated, insufficient demand remains a pronounced problem, and the expectations of private investors and businesses are unstable."
Last year, the fiscal deficit was 8% of GDP, which was high. China will raise fiscal spending by 5.6%, which is less than last year, and we expect the fiscal deficit to moderate.
The market was disappointed with the number, expecting a higher target given the reopening of the chinese economy and the pent-up domestic demand.
FXCM's CHN50 basket declined on the news before finding support at the S2 pivot (right). However, the daily chart (right) continues to consolidate in its neutral area between the blue bands.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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