BEIJING: As China’s two sessions have set the economic growth target of around 5 percent for 2025, economists and analysts have highlighted boosting domestic consumption, fostering high-tech growth and healthcare-related sector as some of the key grippers to drive the growth momentums of the world’s second-largest economy.
During this year’s two sessions, which concluded on Tuesday, thousands of national lawmakers and national political advisors have been briefed about the development situation of the country and they have expressed full of confidence that China will achieve its socio-economic goals set for the year.
Year 2025 also marks the final year of China’s 14th Five-Year Plan (2021-25) period and is also crucial to crafting the next five-year blueprint.
On March 5, China set an annual GDP growth target of around 5 percent for 2025, according to the Government Work Report. Other economic targets were also unveiled, with the deficit-to-GDP ratio being set at approximately 4 percent while the surveyed urban unemployment rate was targeted at around 5.5 percent. The country also eyes over 12 million new urban jobs, and an around 2 percent increase in the consumer price index.
Economists said given domestic pressure and external headwinds, China’s economic policies in 2025 will focus on the expanding domestic consumption, carrying out more key large projects, tapping the vitality of the private-sector, fostering high-tech growths, ensuring the coordination of fiscal and monetary policies, while effectively preventing and defusing risks in key areas and ensuring that no systemic risks arise.
Concerning some foreign media outlets’ questions on China’s economic prospects, Chinese analysts said the country’s economic plan is clearly drawn and well-laid, with fiscal support expected to be frontloaded in the first quarter, followed by enhanced investment in major projects, while the push to expand domestic demand continues.
Zhang Jianping, deputy director of the academic committee at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Wednesday that it is expected government at all levels will increase efforts in expanding consumption and bolstering investment this year in accordance with the arrangements laid out by the central government.
“In particular, the progress on key infrastructure projects will be accelerated, private-sector participation to big projects will be further encouraged, and eligible real estate companies are expected to secure more loans,” Zhang said.
For consumption, the trade-in programs, which has propelled retail sales growth of durable goods including home appliances to double-digit growth, will continue to provide growth impetus to the economy with its expanded scale, Zhang said, noting that this year will likely see a marked rise in sales of consumer products newly added in the trade-in programs.
Ultra-long special treasury bonds totaling 300 billion yuan ($41.31 billion) will be issued to support consumer goods trade-in programs, according to the Government Work Report. The amount doubles the 150 billion yuan arranged in the third quarter of last year.
Cao Heping, an economist at Peking University, told Global Times on Wednesday that recent signals suggest a more proactive approach in 2025, with fiscal funds likely to be funneled through banking and non-banking institutions in the first quarter to accelerate policy coordination at local levels. “The funds are usually allocated in the first quarter,” Cao said.
Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, stressed accelerating equipment upgrades and trade-in programs while boosting spending in tourism, electronics, entertainment, elderly care, and healthcare to strengthen consumer confidence and drive demand. –The Daily Mail-Global Times news exchange item
