MNI BRIEF: China's Investment To Rebound In 2025 - Advisor
MNI (BEIJING) - China’s fixed-asset investment is likely to rebound to 7-8% y/y next year as property investment improves on recent stimulus and the issuance of ultra-long-term special treasuries drives infrastructure construction, said Lu Zhongyuan, former deputy director at the Development Research Center of the State Council on Saturday.
Speaking at the Financial Street Forum, Lu noted consumption may perform better in 2025, but slower income growth remains a constraint, emphasising the need to increase the intensity of subsidising lower incomes, and expand the trade-in programme of consumer goods.
China should still strive for an annual growth rate of about 5% till 2035 to ensure meeting its goal of becoming a medium-level developed country by 2035, which means at least USD20,000 per capita GDP, according to Lu. (See MNI: China Needs Over 5.1% Growth In Q4 To Meet Targets )
China’s fixed-asset investment grew by 3.4% y/y in the first three quarters, while September retail sales recorded 3.2%.