President Xi Jinping has pledged to take more proactive steps in 2025 to accelerate China's economic growth. He also expressed optimism that the country's GDP will exceed at least 17.8 trillion US dollars in the outgoing year in his New Year speech on Tuesday (December 31). British news agency Reuters reported this.
In the televised speech, Xi said that in the past year, China has formulated comprehensive policies in keeping with the changing conditions at home and abroad to maintain a high level of development.
The world's second-largest economy has been under considerable economic pressure due to a prolonged slump in the construction industry, rising local government debt and a lack of consumer confidence. This year they had to burn enough wood to overcome the deadlock. Among these, the fear of higher export duties due to the re-election of Donald Trump has been added as a base for the steep rise.
Xi said there are new challenges in the ongoing economic system. As there is uncertainty caused by changing circumstances across borders, there is pressure to transition from old to new driving forces.
However, expressing hope that all obstacles can be overcome through hard work, he said, like every time we will grow in storms, we will become stronger in difficult times. We have to believe in our own abilities.
To boost domestic demand and construction business, the authorities have taken several accelerated measures, including reducing loan interest rates and easing restrictions on home purchases, since last September.
In the final months of the outgoing year, some top leaders called for relatively easy monetary policy in 2025. If implemented, next year will be the least restrictive policy in 14 years. Besides, they also pledged to take necessary steps to increase consumer spending and bond issuance in 2025.
Authorities have agreed to issue 411 billion US dollars worth of treasury bonds in 2025, according to Reuters, citing unnamed sources.
China's budget deficit is expected to reach 4 percent of GDP in the new year. The government plans to maintain a growth target of around 5 percent in 2025.
