China's budget deficit set to hit 4% of GDP in 2025

According to Reuters, China's budget deficit is projected to reach a record 4% of GDP in 2025, up from the previously expected 3% for this year.

China's budget deficit set to hit 4% of GDP in 2025

These figures were reportedly discussed during a Politburo meeting and the closed-door Central Economic Work Conference in early December, as Beijing aims to implement a more proactive fiscal policy to support the struggling economy. The additional expenditure, approximately CNY 1.3 trillion, will be partially financed by issuing off-budget special bonds.

China's 2025 growth target set at 5% amid stimulus measures

Meanwhile, the annual growth rate in 2025 is expected to remain around 5%, which aligns with the 2024 target. This reflects a series of stimulus measures introduced in September. Official announcements on these targets are expected during the annual parliamentary session in March.