The Chinese economy entered a new normal of lower economic growth in 2014. This year, most provinces, municipalities and autonomous regions have lowered their own individual annual growth targets for 2015. But southwest China's Tibet Autonomous Region has maintained an economic growth target of 12 percent, the same as last year.

Tibet has maintained double-digit growth for 21 years. According to the 2015 Tibet Autonomous Region government work report, the region's GDP last year is expected to be 92.5 billion yuan, an increase of 12 percent compared with previous year.

In 2014, the total retail sales of social consumer goods grew by 12.9 percent; public revenues increased by 30.8 percent ; rural resident's per capita disposable revenue grew 14 percent.

How can Tibet maintain such a high growth rate?

"Although indicators showed high growth, Tibet's economic aggregate is still small, with its GDP accounting for 0.145 percent of China's entire economic output," said Lian Xiangmin, a researcher with the China Tibetology Research Center.

Tibet is now the only province in China whose GDP has not exceeded the 100 billion mark. Thus, Tibet still has great potential for economic growth, said Lian.

Unfavourable natural conditions and a big development gap with China's inland are problems for Tibet.

According to government statistics, the per capita income of Tibet's urban residents last year was 22,026 yuan, only 76 percent of the national average. Almost one fifth of the population still lives below the national poverty line.

Tibet's economic growth has largely depended on financial support from the central government and aid from the rest of China. In 2014, investment contributions from the central government, state-owned enterprises and the private sector were 35.3 billion yuan, 10 billion yuan and 30 billion yuan, respectively. The combination of the three accounted for 81 percent of Tibet's GDP in 2014.

2015 is the last year for the "Twelfth Five-Year Plan". Under the plan, fixed-asset investment in the region is expected to surpass 130 billion yuan in 2015, up 20 percent year on year, covering a wide range of infrastructure projects including railways, roads and airport renovation. 

With the central government investment, national support and a strong drive for self-development, Tibet should not have a problem achieving a 12 percent growth target. Moreover, the construction of the railway is considered an inherent driver of Tibet’s economic growth.

Some experts say the regional government should reduce its dependence on investment while taking advantage of the central government policy to cultivate Tibet's own industries and achieve sustainable development.　　

Edited and translated from Chinese version of 《2015年“西藏速度”不减，经济增速目标维持１２％的高位》.