China's Ambitious GDP Growth Target

China's government has set a GDP growth target of around 5% for 2025, maintaining the same goal as the previous year. This figure may seem modest, but it reflects the severe economic challenges the country faces, such as a sluggish property market and weak domestic consumption. To reach this target, China plans to increase its budget deficit to approximately 4% of GDP, the highest in over three decades, signaling that the government will need to invest heavily to maintain its current growth levels. Such measures suggest a lack of optimism about the economy's ability to improve without significant financial support.