On Wednesday, China shared its plans for economic growth and spending for 2025. Here are the five most important points to know:
1. Growth Goals: China has set a goal to grow its economy by about 5% in 2025. This is what many experts expected, but the country is having a tough time recovering from COVID-19 due to issues like problems in the property market, low consumer spending, and high unemployment among youth.
2. Focus on Domestic Demand: Premier Li Qiang said that boosting domestic demand will be crucial for economic growth. However, he admitted that getting people to spend more money is a challenge. He noted that there isn’t enough strong demand to support steady recovery.
3. Job Creation and Inflation: China plans to create around 12 million new jobs in cities this year and aims to keep inflation at around 2%. They will also issue 1.3 trillion yuan (about $181 billion) in special bonds, which is more than the previous year’s one trillion yuan.
4. Defense Spending and Social Programs: China will raise its defense budget by 7.2% in 2025. This increase is important as China tries to modernize its military amid tensions with the U.S. Additionally, China will raise the minimum pension for elderly citizens and improve care for older people, especially in rural areas. They also plan to support parents by subsidizing childcare and eventually making preschool free.
5. Support for Private Companies: Premier Li promised to help private companies grow, saying that China would protect their rights and interests. However, experts warn that this growth will depend on how well these companies align with China’s government goals.
Li stressed that the global environment is becoming more challenging, with rising protectionism and trade barriers. He said China will resist such actions, without naming specific countries.
Leave a Reply