- The Chinese government maintain its ambitious growth target in 2025, targeting a sizable increase in domestic consumption as the economy seeks to maintain its growth momentum despite unfavourable external conditions.
- Despite the strong signal, the higher deficit target may reflect the central government’s need to take on a greater role in financing, given regional governments’ now-limited fiscal capacity.
- Investments may remain China’s primary growth engine, as the central government continues to rely on the trickle-down effect from higher production activities to boost consumption.
