Bloomberg Daybreak: Asia Edition Charting China's Economic Road Ahead
Mar 6, 2025
Katia Dmitrieva, Asia Economy Reporter for Bloomberg News, offers a deep dive into China's shift from investment-led to consumption-led growth, highlighting Premier Li Qiang’s emphasis on boosting consumption by 2025. George Cipolloni, Portfolio Manager at Penn Mutual Asset Management, discusses the US labor market's slowdown, addressing implications for monetary policy and hiring trends. The conversation navigates the challenges of rising debt in China and the impact of tariffs, painting a complex picture of future economic landscapes in both countries.
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China's Growth Target
- China's official growth target is 5%, mirroring 2024's goal.
- Economists predict 4.5% growth, raising questions about stimulus effectiveness.
Boosting Consumption
- China aims to boost consumption by increasing its fiscal deficit target to 4%.
- This will fund programs like raising pension payouts and medical insurance subsidies.
Preparing for Tariffs
- China anticipates increased US tariffs and is preparing by focusing on domestic consumption.
- This reduces reliance on exports, mitigating the impact of protectionism.