China targets 'around 5%' GDP growth in 2025 amid trade war worries
Published On Mar 4, 2025, 7:21 PM
China has set its GDP growth target for 2025 at approximately 5%, coinciding with rising trade tensions with the U.S. The Chinese government has increased its budget deficit target to around 4% of GDP, the highest since 2010, alongside plans to issue a significant amount of ultra long-term treasury bonds. Additionally, the consumer inflation target has been lowered to about 2%, reflecting sluggish domestic demand. These economic strategies come as China grapples with decreased retail sales growth and an ongoing challenge in the real estate sector.
Stock Forecasts
FXI
Neutral
China's focus on stimulating its economy through budget deficit increases and infrastructure bonds may lead to temporary positive sentiment among investors in Chinese stocks and ETFs. However, the ongoing trade tensions and subdued domestic demand could keep growth under pressure, potentially impacting broader market sentiment.
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