China set its economic growth goal at about 5% for 2025, according to a copy of the government’s annual work report seen by Bloomberg News, raising expectations for officials to unleash more stimulus as they grapple with a US trade war.
Premier Li Qiang is expected to officially announce the target Wednesday morning as he delivers his report to the national parliament in Beijing. This marks the third straight year has China maintained that goal, but repeating it again will be difficult.
The meeting of the National People’s Congress comes one day after US President Donald Trump imposed another 10% tariff on China, threatening to cripple the export engine that last year contributed to almost a third of economic expansion. Adding to Beijing’s problems, the nation is on track to record its longest streak of deflation since the 1960s, while the property crash has yet to bottom out.
President Xi Jinping’s bullish goal will likely require his lieutenants to roll out more aggressive stimulus as promised in December. Economists have called for that campaign to include greater public spending directed, at least in part, toward boosting weak consumer spending.
Li’s report delivered to thousands of delegates at the Great Hall of the People will also provide clues on authorities’ specific plans for fiscal and monetary stimulus, which could impact global commodity prices and inflation.
