China Targets 5% GDP Growth in 2025 as Factory Activity Shows Recovery
Chinese President Xi Jinping announced China is set to achieve 5% GDP growth in 2025, with the economy projected to reach $20 trillion. Factory activity recovered in December with PMI rising to 50.1 from 49.2, ending eight months of decline. However, investment faces potential yearly decline since 1998, while retail sales growth remains weak outside pandemic levels.
*this image is generated using AI for illustrative purposes only.
Chinese President Xi Jinping has declared that China's economy is positioned to achieve its 5% GDP growth target in 2025, with projections indicating the economy will reach $20 trillion by year-end. Speaking at a new year gathering of the country's top political advisory body, Xi emphasized that this growth rate would continue to rank China high among the world's major economies.
Economic Projections and Targets
According to Xinhua news agency, China's economy is projected to reach $20 trillion in 2025, marking the conclusion of the 14th five-year plan. Xi called for national unity to navigate what he described as "high winds, choppy waters, and even dangerous storms" in the economic landscape ahead.
| Economic Indicator | Target/Projection |
|---|---|
| GDP Growth Rate | Around 5% |
| Total GDP Value | $20 trillion |
| Planning Period | End of 14th Five-Year Plan |
Manufacturing Sector Recovery
China's factory activity demonstrated signs of recovery in December, with key manufacturing indicators showing improvement. The official purchasing managers' index provided encouraging signals for the sector's performance.
| Manufacturing Metric | December | November | Status |
|---|---|---|---|
| Official PMI | 50.1 | 49.2 | Above growth threshold |
| Previous Trend | Decline | 8 consecutive months | Recovery phase |
The December reading moved above the critical 50-point threshold that separates growth from contraction, driven by pre-holiday orders after the manufacturing sector had experienced decline for eight consecutive months.
Economic Challenges and Performance
Despite manufacturing improvements, China faces mixed economic indicators across different sectors. Bloomberg reports highlight both strengths and areas of concern in the country's economic performance.
Key Economic Trends:
- Booming exports helped maintain overall growth trajectory
- Investment tracking toward first yearly decline since 1998
- Retail sales growth at weakest levels outside pandemic period
- Government measures targeting consumer spending enhancement
Policy Focus and Future Plans
The government has been actively implementing measures to stimulate economic activity across multiple fronts. These initiatives target both domestic consumption and international engagement to support sustained growth.
Government Priority Areas:
- Driving consumer spending from domestic population
- Attracting tourists and international students
- Increasing foreign investment inflows
- Promoting technological self-reliance
These priorities will continue into the 15th five-year plan, where the government aims to raise personal incomes and reduce the "precautionary savings" habit among citizens. The comprehensive approach reflects China's strategy to balance immediate economic needs with long-term structural improvements in consumption patterns and investment flows.
18
