The Chinese government has officially announced that it will maintain its economic growth target at approximately 5% for the year 2025, notwithstanding the looming trade tensions with the United States and other challenges ahead.
Premier Li Qiang presented this GDP growth target during the commencement of the National People’s Congress, China’s annual legislative meeting, underscoring the government’s strategy to stabilize growth amid a complex economic landscape.
The International Monetary Fund (IMF) has projected a slight dip in China’s economic growth, estimating a rate of 4.6% for the current year, down from the 5% growth recorded in the previous year, as reported by Chinese government statistics.
The government’s official report highlighted the rationale behind setting the growth target at around 5%, citing its alignment with the country’s mid- and long-term development objectives. The emphasized commitment is to confront challenges head-on and pursue concerted efforts to achieve these goals.
In response to the sluggish economy, the report outlined plans to bolster stimulus measures throughout the year. This includes the implementation of a more proactive fiscal policy, with an increase in deficit spending from 3% to 4% of GDP. Additionally, the government intends to issue 1.3 trillion yuan ($180 billion) in ultra-long-term bonds, marking an increase from the previous year’s issuance of 1 trillion yuan.
The recent imposition of tariffs on Chinese goods by U.S. President Donald Trump poses a fresh challenge to an economy already grappling with a prolonged real estate downturn and sluggish consumer spending and private business investments.
Overseeing China’s economic strategy, President Xi Jinping seeks to reduce the economy’s reliance on the heavily indebted real estate sector by promoting innovation and technological advancements. This shift aims to establish a self-reliant economy less susceptible to external influences, particularly in crucial sectors like semiconductor production.
