China unveils resilient growth target with strong policy support

Home>>

(Xinhua) 08:16, March 06, 2025

BEIJING, March 5 (Xinhua) -- China has set an economic growth target of around 5 percent for 2025, reflecting a sound economic outlook despite increasing global uncertainties, as policymakers are determined to secure steady recovery through decisive and effective measures.

Premier Li Qiang on Wednesday announced the goal when delivering the government work report to the annual session of the National People's Congress for deliberation. The report outlines an array of other key development goals for this year, including a surveyed urban unemployment rate of around 5.5 percent, over 12 million new urban jobs, and an around 2 percent increase in the consumer price index.

This photo shows the booth of Contemporary Amperex Technology Co., Limited at the 22nd Guangzhou International Automobile Exhibition at the China Import and Export Fair Complex in Guangzhou, south China's Guangdong Province, Nov. 15, 2024. (Xinhua/Deng Hua)

The country achieved economic growth of 5 percent in 2024 as an impactful policy package, along with other pro-growth measures, helped fuel strong economic momentum.

As 2025 marks the final year of China's 14th Five-Year Plan (2021-2025) period and is crucial for crafting the next five-year blueprint, observers believe that the government policies will not only drive sustained growth this year but also lay the groundwork for the country's modernization drive in the long run.

REASONABLE, ACHIEVABLE GOAL

Why has the Chinese government maintained the growth target at around 5 percent?

The premier explained that the goal, backed by growth potential and favorable conditions, meets the need to stabilize employment, prevent risks and improve the people's wellbeing, while also being well aligned with the country's mid- and long-term objectives.

An aerial drone photo taken on Jan. 6, 2025 shows a view of the Shichengzi photovoltaic power station in Hami City, northwest China's Xinjiang Uygur Autonomous Region. (Photo by Feng Yang/Xinhua)

Huang Qunhui, a national political advisor from the Institute of Economics of the Chinese Academy of Social Sciences, described this year's economic growth target as scientifically grounded and realistic.

"In the face of a challenging global environment, the proactive and resilient goal suggests that China is braving uncertainties with a clear, determined approach to growth," he said.

On a global scale, an around 5-percent growth rate places China among the world's fastest-growing major economies, with the economic increment equating to the annual output of a mid-sized nation.

"Achieving this year's targets will not be easy, and we must make arduous efforts to meet them," the premier said, citing challenges from an increasingly complex and severe external environment, including rising unilateralism and protectionism, and domestic difficulties, such as insufficient effective demand.

The premier called for facing difficulties head-on with stronger confidence in development.

According to the report, China will adopt a more proactive fiscal policy and a moderately loose monetary policy.

This photo taken on Nov. 13, 2024 shows exhibits related to low-altitude economy at Airshow China in Zhuhai, south China's Guangdong Province. (Xinhua/Liang Xu)

Specific measures include a new government debt increase to enable a notably higher level of spending, with 5.66 trillion yuan (about 790 billion U.S. dollars) of government deficit, up 1.6 trillion yuan from a year ago, and the issuance of 4.4 trillion yuan of local government special-purpose bonds, an increase of 500 billion yuan over last year.

The monetary policy will ensure adequate liquidity by making timely cuts to required reserve ratios and interest rates, and offering more support for innovation, green development, consumption, private businesses and small firms, as well as the real estate and stock markets.

The policy mix will play a crucial role in ensuring that the strong economic momentum seen in the fourth quarter of 2024 will be sustained this year, said Tian Xuan, a national lawmaker and president of the National Institute of Financial Research of Tsinghua University.

Recently, the International Monetary Fund, Nomura, and other global institutions raised their growth forecasts for China.

A person uses DeepSeek app on a mobile phone on Feb. 17, 2025. (Xinhua/Huang Zongzhi)

Lu Ting, chief China economist at Nomura, said the forecast upgrade was due to the better-than-expected economic performance in the fourth quarter of 2024, growing investment in emerging sectors from AI to cloud computing, a stock market rally, and the improving real estate market.

China's mid-March economic data will show a solid start for 2025, a Citi Research report said, highlighting a rebound in consumer confidence.

MORE DYNAMIC, SUSTAINABLE

Fostering high-quality development is a key focus on this year's government agenda, with priorities ranging from stimulating domestic demand to developing new quality productive forces.

"We will take a people-centered approach and place a stronger economic policy focus on improving living standards and boosting consumer spending," the premier said.

Consumers learn about relevant policies during a consumer goods trade-in event in Qingdao City, east China's Shandong Province, May 17, 2024. (Xinhua/Li Ziheng)