Beijing has announced a growth target of “around 5 percent” for 2025, the same as last year, the Global Times reports. The country’s leaders unveiled the figure on the first day of the National People’s Congress, which took place yesterday.
Other 2025 targets were announced via a government work report on Wednesday, including a deficit-to-gross domestic product ratio of around 4 percent, an urban unemployment rate at around 5.5 percent and inflation of around 2 percent.
“In proposing these targets, we have considered evolving dynamics both at home and abroad and other relevant factors, including both what is needed and what is possible,” the report read. “A target of around 5 percent is well aligned with our mid-and long-term development goals and underscores our resolve to meet difficulties head-on and strive hard to deliver.”
The central government also pledged to issue more than US$8 billion worth of bonds in 2025, and to “refine and develop new structural monetary policy instruments” to support the real estate sector, scientific innovation, green development initiatives, private businesses, micro enterprises and more.
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Premier Li Qiang meanwhile vowed to “vigorously boost” household demand through the issuance of ultra-long special treasury bonds supporting consumer goods trade-in programmes.
Justin Yifu Lin, a member of the 14th National Committee of the Chinese People’s Political Consultative Conference, told the Global Times that China should be able to maintain a growth rate of at least 5 percent across the coming decade.
“Confidence stems from China’s ability to fully leverage its monetary and fiscal policy space, coupled with industrial policies that transform traditional manufacturing through intelligentisation, digitalisation and green initiatives, to ensure high-quality economic growth,” he said.
The announcement of the target followed Tuesday’s tariff hikes from US President Donald Trump, which were immediately met by retaliatory new levies from China. According to the BBC, the escalating trade war between the US and China could make achieving growth of around 5 percent harder than it was last year – as the economic achievements of recent years were driven by strong exports.
