#China #Beijing #Economic Growth #Macro Policies

China Maps Out Economic Plans for 2025

In a significant two-day event held in Beijing, the Central Economic Working Conference outlined the economic priorities for China in 2025. High-ranking officials, including General Secretary Xi Jinping, emphasized strategies to combat external pressures while maintaining stability and growth within the economy. The discussion came at a time when internal and external challenges are escalating, yet China managed to ensure overall stability and growth. The conference highlighted expectations that key economic and social development objectives for 2024 would be achieved.

One of the main points raised was the necessity for China to adopt a more proactive macroeconomic policy. This involves expanding domestic consumption and fostering extensive development across technological and industrial innovations to effectively manage the economy in 2025. With the backdrop of a complex global economic landscape, the emphasis was placed on sustainable growth in various sectors, particularly in real estate and financial markets.

Fiscal and Monetary Policy Adjustments

The conference concluded with commitments to enhance fiscal policy by increasing the budget deficit and issuing long-term treasury bonds, including special bonds for local governments. Current data shows that China's debt-to-GDP ratio stands at 67.5% as of late 2023, significantly lower than the G20 average of 118.2% and G7’s 123.4%. Historically, China's budget deficit has remained under 3%, a figure considerably more favorable than those of other major economies.

Lan Fo'an, China’s Minister of Finance, stated that the central budget has room to accommodate increased borrowing due to the lower reliance on debt financing. The Conference also indicated a transition from a tight monetary policy towards a more moderate stance to maintain liquidity in the market. This represents the first shift from a