China’s 5% GDP target for 2025 a sign of confidence, but warrants stronger policy support: analysts

WHILE China’s latest growth target is a sign of the country’s confidence in its economy, analysts have cautioned that stronger policy support may be needed to achieve it.

On Wednesday (Mar 5), Beijing maintained its 2025 gross domestic product growth target at about 5 per cent – for the third consecutive year, and despite US tariffs.

Premier Li Qiang announced the latest target as he delivered the government’s annual work report at the opening of the third session of the 14th National People’s Congress.

China achieved 5 per cent growth in 2024, down from the 5.2 per cent growth achieved in the previous year.

In 2022, the world’s second-largest economy grew by just 3 per cent – its second-worst performance since the 1970s. The fourth quarter of that year was hit by stringent Covid-19 curbs, as well as a property market slump.