BEIJING – Key economic and policy priorities during China’s Two Sessions 2025 will focus on economic growth, fiscal strategies, reforms and more.
China’s top policymakers are convening in Beijing this week for the annual “two sessions,” the most significant political event of the year. During these meetings, the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) will outline the key policy directions for 2025.
The Chinese government is expected to set major economic targets and policy strategies to address these domestic and international economic issues.
Key areas to watch include GDP and inflation targets, fiscal stimulus measures, and policies aimed at stimulating domestic consumption, stabilizing the housing sector, and promoting technological innovation.
GDP Growth Target for 2025
China’s growth target, along with inflation expectations measured by the Consumer Price Index (CPI), will be revealed in Premier Li Qiang’s government work report at the NPC’s opening session on Wednesday.
Most analysts predict that China will maintain an approximate 5% GDP growth target for 2025, demonstrating a commitment to economic stability.
Inflation Target Expectations
Regarding inflation, experts anticipate that China may lower its CPI growth target to around 2%—the first time it would drop below 3% since 2004—acknowledging the ongoing deflationary pressures.
Morgan Stanley analysts referenced provincial-level economic targets, noting that 27 regional governments have already lowered their CPI growth targets from 3% to 2%. This trend could indicate a similar approach at the national level.
Fiscal Policy and Stimulus Plans
Since the Central Economic Work Conference in December signaled a more proactive fiscal stance, expectations for stronger government support have been rising.
Analysts forecast that Beijing may increase its official deficit-to-GDP ratio to 4%, surpassing the usual 3% threshold observed in most years except for 2020 and 2023.
Policy Priorities for 2025
Stimulating domestic consumption and demand will be central to China’s policy agenda, given external risks and deflationary challenges.
The analysts expect the government to expand consumer goods trade-in programs, increase pension benefits for retirees, and enhance social insurance subsidies to boost household spending.
Stabilizing the struggling real estate market is also a priority. Planned measures include urban renewal projects, support for first-time and upgrading homebuyers, tighter control over land supply, and strategies to reduce housing inventory.
While Beijing aims to balance fiscal input between supply and demand, recent advancements in technology may reinforce its focus on supply chain self-sufficiency.
As a result, much of the expected stimulus may be directed toward infrastructure and manufacturing investment, with only a third allocated to boosting consumption.
Further anticipated policy measures, include increased investment in innovation, artificial intelligence, and private-sector legislation, as well as efforts to address legal and regulatory challenges affecting businesses.
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