At the recent Central Economic Work Conference held in Beijing, Chinese leaders outlined the nation’s key economic priorities for 2025. A significant focus was placed on boosting consumption and expanding domestic demand, setting the tone for the country’s economic strategy in the upcoming year.
The meeting emphasized the need for a more proactive fiscal policy to stimulate growth. This approach includes measures to enhance consumer spending and drive domestic markets, reflecting China’s commitment to sustaining its economic momentum.
To gain deeper insights into these strategies, CGTN interviewed Zhang Ning, Senior China Economist at UBS. Zhang highlighted the importance of encouraging consumer confidence and increasing disposable income to fuel consumption. “Boosting domestic demand is crucial for China’s economic stability and growth,” Zhang noted. “A proactive fiscal policy, combined with a moderately loose monetary policy, can provide the necessary support for these objectives.”
The shift towards a “moderately loose” monetary policy indicates a willingness to adapt financial regulations to facilitate lending and investment. By easing monetary conditions, the government aims to create an environment conducive to business expansion and consumer spending.
Analysts suggest that these policies are designed to balance short-term economic needs with long-term development goals. Enhancing domestic demand not only supports immediate growth but also aligns with China’s broader vision of sustainable and inclusive economic progress.
As China prepares for 2025, the emphasis on consumption and domestic demand signals a strategic move to strengthen the internal drivers of its economy. The proactive measures discussed at the Central Economic Work Conference underscore the government’s commitment to navigating global economic challenges while fostering prosperity at home.
Reference(s):
cgtn.com
