China Sets Economic Goals Target of 5% for 2025 in New Report

China has shared its key economic goals and policy strategies for 2025 in a work report presented to the national legislature on Wednesday.

For 2025, China has set a target economic growth rate of approximately 5 percent and an annual increase in the consumer price index (CPI) of about 2 percent. In a bid to stimulate the economy, China will issue 1.3 trillion yuan (roughly 182 billion U.S. dollars) in ultra-long special treasury bonds, marking an increase of 300 billion yuan from the previous year.

The country’s new government debt will reach 11.86 trillion yuan in 2025, representing a rise of 2.9 trillion yuan compared to 2024. This increase will allow for significantly higher levels of fiscal spending to boost economic activity.

China Sets Economic Goals Target of 5% for 2025 in New Report

In addition, China plans to issue 4.4 trillion yuan in local government special-purpose bonds, an increase of 500 billion yuan from 2024. These efforts are part of the government’s broader fiscal expansion strategy.

To further invigorate the economy, China will make adjustments to its monetary policy, including potential cuts to the required reserve ratios and interest rates. The government will also allocate 500 billion yuan in special treasury bonds to help major state-owned commercial banks replenish their capital reserves.

China intends to fine-tune structural monetary policy instruments to better support the real estate sector and stock market. Special initiatives will also be launched to stimulate consumer spending, such as a 300 billion yuan bond issue to back consumer goods trade-in programs.

In its push for technological innovation and economic transformation, China will focus on fostering emerging industries and continue deepening reforms in investment and financing within the capital markets. The report highlights the promotion of the platform economy and support for the growth of unicorn and gazelle companies.

Finally, the government has set a surveyed urban unemployment rate target of around 5.5 percent for 2025, reflecting its ongoing efforts to stabilize employment and maintain financial security.

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