Politics
Xi Jinping promises more proactive economic policies for 2025
China's gross domestic product (GDP) is expected to exceed 130 trillion yuan ($17.8 trillion) in 2024, Chinese President Xi Jinping said in his New Year speech on Tuesday, adding that the country would implement more proactive policies to promote growth in 2025.
The world's second-largest economy has struggled to mount a robust recovery this year as a prolonged housing market slump, rising local government debt and weak consumer confidence have dampened growth.
Exports, a key driver and bright spot for the economy, could be threatened by potentially higher tariffs when US President-elect Donald Trump returns to the White House in late January.
In a televised speech, Xi said China has responded to the impacts of changes in the domestic and international environment and adopted a wide range of policies to pursue high-quality development over the past year.
Since late September, authorities have launched a series of stimulus measures, including broad interest rate cuts and more flexible rules for home purchases, to support the property market and domestic demand.
“The current economic operation faces new challenges, including challenges related to uncertainties in the external environment and the pressure to transform old growth engines into new ones,” Xi said.
“But we can win through our hard work. As always, we grow with the wind and rain, and we become stronger in difficult times,” he added. “We have to have confidence.”
In another speech at a New Year's Eve event on Tuesday, Xi said China's GDP is expected to have grown by around 5% this year, suggesting the country is ready to meet the growth target official for 2024.
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