CX Daily: China Tables Fiscal Salvo for Flagging Domestic Demand

Fiscal /

Analysis: China tables fiscal salvo for flagging domestic demand

China surprised few by announcing a GDP growth target of “around 5%” for 2025, the same as last year, but it also revealed a record-high budget deficit projection, indicating fresh fiscal stimulus in the pipeline.

The spotlight is now on the greater fiscal spending, which Beijing has tabled as one of the primary tools to help navigate economic headwinds, including an unstable real estate market, as well as weak consumer confidence and domestic demand. These tools are crucial for China to achieve its growth goal amid mounting external uncertainties.