China is poised to stimulate its economic growth in 2025 through the implementation of proactive macroeconomic policies, as highlighted at the annual Central Economic Work Conference held in Beijing from Wednesday to Thursday. The conference underscored the nation’s commitment to invigorating market confidence and driving domestic demand, setting the stage for sustained economic development in the coming year.
According to the conference, China will adopt a “moderately loose” monetary policy, which includes lowering the reserve requirement ratio and adjusting interest rates when necessary to ensure adequate liquidity in the financial system. This move aims to provide ample funding opportunities for businesses and consumers alike, fostering an environment conducive to investment and consumption.
Economic experts have lauded this policy direction, noting that it signals a decisive effort by China to bolster its economy amid global uncertainties. “The proactive measures will not only rejuvenate market sentiment but also pave the way for stable growth,” remarked Li Wei, a senior economist at the China Development Research Foundation. “By ensuring sufficient liquidity, China is addressing potential financial risks and laying the groundwork for long-term economic resilience.”
The emphasis on boosting domestic demand is particularly significant, as it reflects China’s strategic shift towards a consumption-driven economy. Initiatives to stimulate spending are expected to include support for key industries, incentives for innovation, and policies that enhance the overall business climate. These efforts are anticipated to generate new employment opportunities and improve the livelihoods of residents across the country.
Furthermore, the conference highlighted the importance of structural reforms and opening-up policies to attract foreign investment and foster international cooperation. By enhancing transparency and reducing market barriers, China aims to strengthen its economic ties with global partners and contribute to regional and global economic stability.
“China’s commitment to proactive macro policies demonstrates its readiness to navigate the complex challenges of the global economy,” said Zhang Min, a professor of international economics at Peking University. “These policies will not only stimulate internal growth but also have positive spillover effects for Asia and the world.”
As China embarks on this proactive policy path, stakeholders from various sectors are optimistic about the prospects for 2025. The concerted efforts to balance growth, stability, and reform are expected to reinforce China’s position as a dynamic and influential player in the global economic landscape.
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China's proactive macro policies will boost demand and growth in 2025
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