China's economic policies
The Chinese Minister of Finance, Lan Fo'an, noted that the central government has left a large place for political tools to be implemented during the coming year.
He suggested that new recovery measures could be on the cards, after the government set the target of budget deficit from 2025 to 4% of the gross domestic product (GDP) of the country.
“On the one hand, more efforts are necessary to carry out existing policies. We must well implement the political package proposed in the fourth quarter of last year and ensure the sustained effect of this policy in 2025, “said Lan.
“On the other hand, an additional concrete policy must be designed. We must fully use political space. »»
China is committed to intensifying the support of the local economy.
On Wednesday, Chinese Prime Minister Li Qiang, detailed China's economic policies for the rest of the year, revealing that the second world economy Keep the goal of this year's GDP at around 5% – An objective that some analysts describe as difficult.
“Currently, our forecasts are approximately 4.2% and part of the reason is that, before, we have seen China really make many stops in order to reach the growth target of 5% in 2023 and 2024. Thus, they work on a higher basis,” said Heron Lim, economist at Moody's Analytics.
“So, to increase 5% reduction over two consecutive years of growth by around 5% each, I think it is in itself a challenge.”
