Explainer | ‘Two sessions’ set to unveil China’s top economic priorities for this year
GDP growth and inflation targets set to be unveiled alongside steps to boost domestic consumption as trade tensions with US increase
China’s top policymakers will gather in Beijing this week for the annual “two sessions”, the country’s biggest political event, where the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) will set the stage for Beijing’s 2025 policy playbook.
Faced with sluggish domestic demand, deflationary pressures, a prolonged property sector downturn and heightened US-China trade tensions, Beijing is expected to outline its major economic targets and policy priorities to help the country navigate mounting challenges.
Here’s what to watch: from gross domestic product (GDP) and inflation targets to fiscal stimulus plans, and how Beijing aims to tackle domestic consumption, housing market risks and tech innovation in the year ahead.
What GDP growth target Beijing will set for 2025?
Key goals, including those for GDP growth and inflation as measured by the consumer price index (CPI), are expected to be unveiled when Premier Li Qiang delivers the government work report at the opening session of the NPC meeting on Wednesday.
Analysts widely predict Beijing will maintain an “around 5 per cent” GDP growth target for 2025 to stabilise expectations and show its commitment to supporting the economy.
UBS analysts called the predicted target “ambitious given the lingering growth headwinds and uncertainties”, as the Swiss bank maintained its baseline GDP growth forecast for 2025 at around 4 per cent, according to a note released on February 24.
What about the inflation target?
