europe.chinadaily.com.cn
China Targets 5 Percent GDP Growth in 2025, Unveils Major Fiscal and Monetary Policy Shifts
China's Government Work Report sets a 5 percent GDP growth target for 2025, implementing a more proactive fiscal policy with a 4 percent fiscal deficit-to-GDP ratio, issuing 1.3 trillion yuan in ultra-long-term special treasury bonds, and shifting to a moderately loose monetary policy to boost domestic demand and improve living standards.
- How does the increased fiscal deficit and the shift to a moderately loose monetary policy contribute to China's economic growth strategy?
- This sustained growth target reflects a multiyear shift toward prioritizing consumption and improving living standards. The increased fiscal spending, including 1.3 trillion yuan in ultra-long-term special treasury bonds and 4.4 trillion yuan in special local government bonds, aims to stimulate domestic demand and offset weakening external demand.
- What are the long-term implications of prioritizing consumption and improving living standards as the primary drivers of economic growth in China?
- The shift to a moderately loose monetary policy, coupled with planned cuts to reserve requirement ratios and interest rates, signals a significant change in macroeconomic policy. These measures, along with targeted support for the real estate and stock markets, aim to boost investor and consumer confidence, potentially leading to sustained economic growth and improved living standards.
- What are the key policy adjustments announced in China's Government Work Report to maintain its GDP growth target, and what are their immediate impacts?
- China's 2025 GDP growth target remains at around 5 percent, marking a continued focus on steady growth despite external challenges. The government will implement a "more proactive" fiscal policy, increasing the fiscal deficit-to-GDP ratio to around 4 percent and issuing substantial special treasury bonds to boost domestic demand.
Cognitive Concepts
Framing Bias
The framing is generally neutral, presenting the government's economic plans and various expert opinions. While the article highlights the government's initiatives positively, it also includes concerns and challenges. The headline and introduction accurately reflect the main points of the report without significant spin.
Sustainable Development Goals
The Chinese government's plan to maintain a steady GDP growth trajectory of around 5 percent, coupled with a "more proactive fiscal policy" and a moderately loose monetary policy, aims to stimulate economic growth and create jobs. The increased government spending on infrastructure projects and support for state-owned banks will likely lead to job creation and economic expansion. The focus on boosting consumption and improving people's living standards also contributes to this goal.