China sets 2025 GDP growth target at 5%, aims for lower inflation- reports

Published 05/03/2025, 02:20
© Reuters.

Investing.com-- China has set its 2025 economic growth target at approximately 5%, according to media reports citing official documents seen by them.

Premier Li Qiang is scheduled to present this target during his address at the National People’s Congress (NPC) later on Wednesday.

The NPC, China’s paramount legislative assembly, convenes annually to outline the nation’s economic and social directives. This year’s session, commencing on March 5, will deliberate on the government’s work report, assess the implementation of the 2024 economic plan, and review the proposed 2025 economic and social development blueprint.

The 5% growth target underscores Beijing’s determination to sustain economic momentum amid escalating trade tensions.

Recently, the U.S. imposed 20% tariffs on a range of Chinese imports, intensifying the strain on bilateral trade relations. 

In response to these external pressures, China is expected to adopt robust fiscal measures, including increasing the budget deficit to 4% of GDP and issuing 1.3 trillion yuan in special treasury bonds, the reports stated.

These funds are anticipated to support consumption and counter deflationary trends, with allocations directed toward subsidies for electric vehicles and household appliances, as well as investments in advanced manufacturing and technology sectors, the reports said.

Acknowledging deflationary pressures, the government has reduced its official consumer price increase target to approximately 2%, the lowest level since 2003, according to reports.

China’s annual parliamentary meeting, also known as "Two Sessions", is being held from March 5 to March 11 this week in Beijing.

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