China Targets 5% GDP growth in 2025 amid global headwinds

English , Kashmir - آزاد جموں کشمیر , Snippets , / Thursday, May 8th, 2025

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Beijing, May 8, 2025 – China has reaffirmed its commitment to economic stability by setting a GDP growth target of approximately 5% for 2025. This decision reflects the government’s strategic approach to navigate both domestic challenges and international uncertainties.
To support this growth objective, the government has announced a series of fiscal and monetary measures. These include the issuance of 1.3 trillion yuan in ultra-long-term special treasury bonds and 4.4 trillion yuan in local government special-purpose bonds, aimed at financing infrastructure projects, technological advancements, and social welfare programs. Additionally, the People’s Bank of China has reduced the benchmark interest rate to 1.4% and lowered the reserve requirement ratio by 0.5 percentage points, effectively injecting approximately 1 trillion yuan into the banking system to enhance liquidity and encourage lending.
The government is also focusing on structural reforms to drive long-term growth. Efforts are underway to promote high-tech industries, including artificial intelligence, quantum computing, and green energy. Investments in research and development are being increased to foster innovation and competitiveness.
Employment remains a central concern, with plans to create over 12 million new urban jobs and maintain the urban unemployment rate around 5.5%. Consumer price inflation is targeted at approximately 2%, reflecting a balanced approach to economic expansion and price stability.
As 2025 marks the final year of the 14th Five-Year Plan, these comprehensive policies are designed not only to achieve the current growth target but also to lay a solid foundation for the forthcoming 15th Five-Year Plan. China’s proactive stance demonstrates its resolve to navigate economic headwinds and sustain its role as a key driver of global growth.