Guangzhou (JLC), March 6, 2025--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, Xinhua News Agency reported on March 5.
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.
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.
"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.
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.
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.
Domestic demand will be made the main engine and anchor of economic growth, the report said. Ultra-long special treasury bonds totaling 300 billion yuan will be issued to support consumer goods trade-in programs.
New quality productive forces will be nurtured in line with local conditions, according to the report. China aims to foster emerging and future industries, such as quantum technology and the low-altitude economy, accelerate the upgrading of traditional industries, and combine digital technologies such as AI with manufacturing and market strengths.
Analysts highlighted the resilience of China's tech industry amid a complex international landscape and the vast potential of the domestic market.
The new economic trend is also creating fresh opportunities for foreign investors and businesses.
Reaffirming China's commitment to opening up, the report laid out a series of initiatives, including expanding trials to open telecom, medical services, and education, supporting foreign enterprises in joining industrial chain collaboration, and ensuring national treatment in fields such as government procurement.
Foreign-funded businesses actively embraced these measures.
(Xinhua News Agency)
