Explained: How China Plans to Boost Weak Consumption in 2025
- Fernando Braganca
- Mar 3
- 3 min read
Summary
China is increasing government spending to support consumption, with bond issuance expected to surpass $276.9 billion.
Subsidies for replacing old consumer goods, such as automobiles and home appliances, are showing positive results and will be expanded.
Policymakers are planning to raise pensions and provide additional social insurance to boost household incomes.
China’s consumption sector has been struggling, and this has hindered overall economic recovery. While the government has set ambitious goals to make consumption a central driver of economic growth, it has yet to implement major reforms to make this happen. In response to ongoing challenges, policymakers are now considering a variety of measures to stimulate domestic demand. This explainer delves into how China plans to boost its weak consumption in 2025.
Raising Welfare to Stimulate Spending