China’s authorities are optimistic about national economic growth. Experts echo this sentiment, also anticipating an economic upturn. With such joint efforts, the Chinese economy is bound to expand.
According to Reuters, Chinese authorities reckon that the national economy will grow by 5% in 2025. “There is no doubt that China will achieve a 5% GDP growth this year,” Zhao Chenxin, Deputy Director of the National Development and Reform Commission (NDRC) of China, voiced the government forecast. Meanwhile, investors are wondering how exactly the country plans to achieve such results. Zhao announced that the agency will roll out new policies in the second quarter of 2025. “The achievements of the first quarter have laid a solid foundation for economic development throughout the year. Regardless of the international agenda, China will stick to its development goals,” he emphasized.
However, these statements contradict the views of numerous experts who believe that the escalating US-China trade war will negatively impact the Chinese economy. Against this backdrop, the International Monetary Fund (IMF), Goldman Sachs, and UBS have downgraded their forecasts for China’s economic growth in 2025 and 2026. Their conclusions are based on the imposition of sweeping tariffs by the US government. Previously, experts noted that the trade standoff comes at a difficult time for China’s economy, as the country faces deflation due to sluggish income growth and a prolonged real estate crisis. Almost none of the analysts expect China to reach its 5% growth target. Nevertheless, the country remains full of optimism. Time will tell whether that optimism is justified.
