China Plans Economic Boost for 2025

As China prepares for 2025, boosting domestic demand and consumption has become a central focus for economic policymakers, aiming to address ongoing economic challenges. The recent Central Economic Work Conference emphasized the transition to a consumption-driven economy, with plans for proactive fiscal policies and stimulus measures to restore consumer sentiment. Notably, consumption accounted for 82.5% of total economic growth in 2023, reflecting the increasing importance of domestic markets. Concurrently, significant salary increases for civil servants, backdated to July, aim to enhance morale and spur spending. Additionally, the fifth national economic census highlighted substantial growth in the service and manufacturing sectors, indicating an ongoing structural transformation within the economy. As investment and exports decrease in relative importance, the trend towards domestic consumption is expected to shape China's economic landscape going forward.