Summary
China’s GDP growth target for 2025 is expected to stay at 5%, maintaining a stable growth rate amidst internal and external challenges.
Policymakers plan to implement proactive fiscal and monetary policies to stimulate growth, including a potential deficit target of 4% of GDP.
China is shifting its fiscal approach by giving local governments more flexibility in the use of special-purpose bonds to drive growth.
China's economy faces a complex landscape in 2025, with global economic uncertainties and domestic pressures. Despite these challenges, the Chinese government is likely to maintain its GDP growth target at 5% for the upcoming year. This target is in line with the nation's commitment to ensuring stability and continued growth while implementing new, proactive measures to stimulate the economy.