Xi Signals Economic Resilience as China Eyes Around 5% Growth in 2025
BEIJING: China’s economy is expected to record growth of around five percent in 2025, President Xi Jinping said on Wednesday, projecting confidence despite mounting domestic and external pressures during what he described as an “extraordinary” year.
The estimate, announced during Xi’s New Year address to the Chinese People’s Political Consultative Conference (CPPCC) and reported by state news agency Xinhua, aligns with the government’s official target and mirrors the growth pace achieved in 2024.
China, the world’s second-largest economy, has faced sustained challenges in recent years as consumer confidence struggles to rebound following the Covid-19 pandemic. Economic headwinds have been compounded by a prolonged property sector debt crisis, industrial overcapacity, and escalating trade tensions with the United States.
“Despite various pressures, we confronted difficulties head-on and worked diligently, successfully completing the main objectives of economic and social development,” Xi said, according to Xinhua.
Analysts broadly expect Beijing to maintain a similar growth target for 2026, which is likely to be formally unveiled during China’s annual “Two Sessions” political meetings scheduled for early March.
In a separate New Year broadcast to the nation, Xi highlighted China’s progress in strategic sectors, saying the country had strengthened its economic, technological, and defense capabilities despite global uncertainties.
He pointed to advances in artificial intelligence and semiconductor development, noting that multiple large-scale AI models are now competing globally and that breakthroughs have been achieved in the development of domestically produced chips.
China must “remain focused on its goals, strengthen confidence, and build momentum to move forward,” Xi said, calling for sustained efforts in the year ahead.
Adding to the cautiously optimistic outlook, official data released on Wednesday showed that factory activity expanded in December, returning to growth territory after eight consecutive months of contraction, a welcome signal for policymakers seeking to stabilize the economy.
AFP