In January, the country's consumer price index (CPI), a main gauge of inflation, eased to 4.5 percent year-on-year, down from a 37-month high of 6.5 percent in July last year.

Liu Shucheng, an economist with the Chinese Academy of Social Sciences, said the lowered target would help maintain a stable price level.

SEEKING QUALITY GROWTH

With a lower growth target, the government expected to leave more room to solve the problems of "imbalanced, uncoordinated, and unsustainable development" in China, according to Wen.

The Asian economic powerhouse, which has been striving to shift away from dependence on exports, has put more emphasis on domestic consumption as its engine of growth this year.

"Expanding domestic demand, particularly consumer demand, which is essential to ensuring China's long-term, steady, and robust economic development, is the focus of our economic work this year," Wen said.

Government policies will be improved to encourage consumption, and social safety net will be expanding, according to Wen.

"As the external market shrank, expanding domestic demand and shifting to a consumption-led economy has become an inevitable choice for China," said Chi Fulin, head of the China (Hainan) Institute for Reform and Development.

The government needs to further encourage people to spend by eliminating their concerns and providing more social welfare, said Chi.

Wen has also vowed to further promote reform in income distribution reform and the progress of urbanization, which are seen as key measures in boosting domestic consumption.

"Progresses in urbanization is the ultimate way to increase farmers' income and expand consumption in the rural market," said Zhuang Jian.