China has set a target economic growth rate of "around 5%" for 2025. This was reported by AP, as conveyed by UNN.
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The forecast announced by Prime Minister Li Qiang indicates the government's desire to maintain control over the economic situation without excessive acceleration of growth rates. According to IMF estimates, China's actual GDP growth in 2025 may be lower than this figure, at 4.6%, reflecting a slowdown in economic dynamics compared to the previous year.
To support the economy, the government plans to implement a "more proactive fiscal policy." One of the key steps will be to increase the budget deficit to 4% of GDP, as well as issue ultra-long-term bonds worth 1.3 trillion yuan, exceeding last year's figures.
External trade challenges remain a significant risk to China's economic stability. Tariffs imposed by the U.S. could significantly impact Chinese exports, which are critical for supporting industrial production. Additionally, the domestic economy is facing the consequences of a prolonged downturn in the real estate market and low levels of private investment.
President Xi Jinping aims to transform the economic model by reducing dependence on the construction sector and directing resources towards technology development. However, U.S. restrictions on the export of high-tech products complicate this strategy.
To stimulate domestic consumption, the government continues its subsidy policy for citizens upgrading household appliances or vehicles. Measures to support businesses aimed at modernizing production capacities have also been introduced. A review of monetary policy could be an additional factor for economic growth.