China's gross domestic product (GDP) in 2024 is expected to exceed 130 trillion yuan ($17.8 trillion), President Xi Jinping said Tuesday in his New Year's address, adding that the country will implement more proactive policies to boost growth in 2025.
The world's second-largest economy has struggled to post a strong recovery this year due to a prolonged property market slump, rising local government debt and weak consumer confidence.
Exports, a key driver, are at risk of being hit by a possible tariff hike when President-elect Donald Trump returns to the White House in late January.
In a televised speech, Xi said China has responded to the impact of changing domestic and international environments by implementing a range of policies to pursue high-quality development over the past year.
Since late September, authorities have implemented a series of stimulus measures, including a broad-based interest rate cut and easing home purchase regulations to support the property market and domestic demand.
“Current economic operations are facing new challenges, including uncertainties in the external environment and the pressure of transformation from old to new growth drivers,” Xi said.
“But we are able to overcome them with hard work. As always, we grow through storms and rains, and we come out stronger through difficult times,” he added.
In another speech at a New Year’s event earlier on Tuesday, Xi said China’s GDP is expected to grow around 5% this year, showing the country is on track to meet its official 2024 growth target.
They also pledged to stimulate consumption and increase bond issuance to boost growth next year.
Chinese authorities have agreed to issue a record 3 trillion yuan ($411 billion) worth of special treasury bonds in 2025, according to a Reuters report.
The country’s budget deficit is expected to widen to 4% of GDP in 2025, another source said separately, while the government plans to maintain its growth target of around 5%.
