Economists believe China will increase stimulus to offset tariff impacts on economic growth and reach ambitious GDP targets.
The Role of Stimulus in China's Economy
Macquarie's chief China economist Larry Hu revealed that Beijing plans to use stimulus to mitigate tariffs, aiming for a GDP growth of around 5%.
Tariff Challenges and China's Response
China faces new U.S. tariffs, putting pressure on exports and the economy. The government aims to boost domestic consumption and reduce export reliance.
Beijing’s target of around 5 percent growth amidst ongoing trade tensions with the U.S. speaks volumes about their strategic economic confidence.Greg Shockey
Inflation and Budget Measures
China revised its inflation target to around 2%, reflecting acceptance of deflationary trends. The government raised its budget deficit target to 4% of GDP.
China's economic measures aim for a balance between internal stimuli and external challenges, essential for reaching GDP growth targets in current conditions.
