Xi Jinping, China’s Leader, Nods to Economic Challenges
Published On Dec 31, 2024, 10:40 PM
In a New Year’s address, Chinese leader Xi Jinping acknowledged the difficulties facing China's economy, including challenges from external uncertainties and the transition between old and new economic drivers. Despite these challenges, he reaffirmed the government's target of 5% GDP growth for 2024, although skepticism exists regarding the accuracy of this figure due to ongoing economic struggles. Measures like increased public borrowing, spending, and interest rate cuts have been promised to stimulate consumer spending. Analysts suggest the economy only grew by 2.4% to 2.8% instead of the government claims, and they predict modest growth of 3% to 4.5% for 2025 under better conditions.
Stock Forecasts
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The acknowledgment of economic struggles by Xi Jinping could signal a potential for government intervention and support in the Chinese economy. However, with inflation concerns and reliance on weak consumer demand, investments may be cautious. Continued tensions with the U.S., especially regarding tariffs, may further impact economic stability.
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