China Sets 2025 Economic Growth Target Amid Trade War Challenges
China maintains its GDP growth target at around 5% for 2025, aiming to stimulate economy amid external trade pressures and weak domestic demand.
Overview
At the National People’s Congress, Premier Li Qiang announced China’s 2025 GDP growth target will remain at 5%. This target addresses domestic demand issues and external trade challenges amidst a new US-China trade war. The government plans to increase fiscal stimulus, including more spending on consumer rebates and infrastructure. Analysts caution that achieving this goal may require more robust stimulus measures given current economic headwinds.
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Analysis
- China's government has set a GDP growth target of around 5% for 2025, aiming to stabilize growth despite a complex economic environment and ongoing trade tensions with the U.S.
- The government's plan includes a proactive fiscal policy, increasing deficit spending, and issuing bonds to stimulate domestic demand and spending.
- Despite the ambitious target, analysts warn it may be unattainable without significant stimulus measures and express concern over China's reliance on heavy industries contributing to high carbon emissions.
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Associated Press·4M·FAQ
China's GDP growth target for 2025 is around 5%, which is the same as the target for 2024. This consistency reflects policymakers' confidence in the economy despite global challenges.
China plans to increase fiscal stimulus, including issuing more local government special-purpose bonds and adopting a more proactive fiscal policy. This aims to boost domestic demand and counter external trade challenges.
Besides the GDP growth target, China has set a deficit-to-GDP ratio of around 4%, a surveyed urban unemployment rate of around 5.5%, and a CPI target of around 2% for 2025.
Most Chinese provinces have set GDP growth targets between 5% and 6% for 2025, aligning with the national strategy of stable and high-quality growth. These targets reflect regional priorities and confidence in the domestic economy.
History
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