China's economic landscape is set for remarkable growth in 2025, building upon the robust performance of 2024. The third session of the 14th National People's Congress, held at the Great Hall of the People in Beijing, underscored China's commitment to maintaining economic stability and expansion. Chinese Premier Li Qiang's government work report reaffirmed this determination.
In 2024, China's economy demonstrated resilience and dynamism, achieving a solid GDP growth rate of 5 percent and surpassing a historical peak of 130 trillion yuan ($17.82 trillion) for the first time. This growth propelled China to be one of the world's fastest-growing major economies, contributing approximately 30 percent to global economic growth.
The government has outlined an ambitious yet attainable plan for 2025, placing emphasis on proactive fiscal and monetary policies to sustain momentum. With a GDP growth target set at around 5 percent for 2025, China showcases confidence despite prevailing global risks. The critical question remains: How will China sustain this growth and achieve its 2025 goals?
A pivotal strategy involves increasing the deficit-to-GDP ratio from 3 percent in 2024 to 4 percent, signaling an expansionary fiscal policy to bolster growth. The issuance of 4.4 trillion yuan in local government special-purpose bonds in 2025, a 500 billion yuan increase from the previous year, highlights the focus on infrastructure investment.
Additionally, 1.3 trillion yuan in ultra-long special treasury bonds will finance strategic projects. The monetary policy will remain supportive, with targeted interest rate cuts to encourage borrowing and investment. These measures aim to infuse liquidity into the market, ensuring that businesses have the necessary capital for growth and innovation.
China has always prioritized infrastructure development, and this remains central to the 2025 economic plan. The expansion of special-purpose bonds demonstrates the government's commitment to enhancing transportation, energy, and urbanization. These investments are designed not only to stimulate short-term economic growth but also to lay the foundation for long-term prosperity.
Accelerating industrial development is another critical focus. In 2024, high-tech manufacturing output rose by 8.9 percent, while equipment manufacturing grew by 7.7 percent. New energy vehicle production reached 13 million units, cementing China's leadership in green transportation. Looking ahead to 2025, the government aims to fast-track advancements in artificial intelligence, semiconductors, and renewable energy, solidifying China's position as a global technology powerhouse.
Reference(s):
cgtn.com
