China’s 2024 GDP is expected to exceed 130 trillion yuan ($17.8 trillion), President Xi Jinping said in his New Year’s speech.
He also mentioned that China would adopt more proactive policies to boost growth in 2025.
The country’s economy, the second-largest in the world, has faced challenges this year, including a slowdown in the property market, growing local government debt, and weak consumer confidence. Exports, which have been a strong point for the economy, may face new challenges if higher tariffs are imposed when President-elect Donald Trump returns to office in January.
In his televised speech, Xi said that China had responded to both domestic and international challenges and had introduced policies to focus on high-quality development. Since September, the government launched several stimulus measures, including interest rate cuts and relaxed home buying rules to support the property market and boost domestic demand.
Xi acknowledged that the economy faces new challenges, including external uncertainties and pressure to shift from old growth drivers to new ones. “But we can prevail with our hard work. As always, we grow in the wind and rain, and we get stronger through hard times,” he said. “We must be confident.”
In another New Year event Xi said that China’s GDP is expected to grow by around 5% in 2024, meaning it will meet its official growth target for the year.
China’s top leaders recently pledged to adopt an “appropriately loose” monetary policy in 2025, marking the first easing in 14 years. They also promised to boost consumption and increase bond issuance to stimulate growth.
Chinese authorities plan to issue a record 3 trillion yuan ($411 billion) worth of special treasury bonds in 2025. The country’s budget deficit is expected to rise to 4% of GDP in 2025, with a growth target of around 5%.
