Update: China Keeps GDP Growth Target at ‘Around 5%’ as Premier Warns of Challenges

China has set its target for GDP growth this year at around 5%, Premier Li Qiang said Tuesday, acknowledging it would not be an easy goal to meet amid challenges that include a lack of effective demand, overcapacity in some industries, and a complex and severe external environment.

Li announced the target for growth and projections for other economic indicators including unemployment, inflation, and the budget deficit in his first work report to the annual session of the National People’s Congress, the country’s top legislature. The GDP expansion goal is unchanged from last year’s target and is in line with market forecasts.