MNI BRIEF: China Aims For 5% GDP Growth, Gov Debt Quota Rises
MNI (BEIJING) - China will target 5% GDP growth for 2025 with proactive fiscal expansion for domestic demand as the economy faces increasing external challenges, according to the Government Work Report released during the opening ceremony of the annual National People’s Congress on Wednesday.
Premier Li Qiang stressed the target is to ensure employment, mitigate risks, and improve people's livelihoods while aligning with the country’s medium- and long-term development goals. (See MNI: China To Ensure 5% GDP Amid Export Uncertainty: CASS's Yu)
Beijing will also strengthen fiscal stimulus in 2025, raising the deficit/GDP ratio to a record high of around 4%, increasing the deficit CNY1.6 trillion from last year to a total CNY5.66 trillion, he said, announcing the total new government debt will amount to CNY11.86 trillion, an increase of CNY2.9 trillion compared to 2024.
About CNY1.3 trillion of ultra-long-term special treasuries will be issued, an increase of CNY300 billion from the previous year, and CNY500 billion in special treasuries will be printed to support capital replenishment for large state-owned commercial banks, he said. CNY4.4 trillion of local government special bond issuance is also planned, an increase of CNY500 billion from last year, he continued.