China has reported a 4 per cent growth in consumption in the first two months of 2025, a modest increase that keeps the pressure on policymakers as China strives to achieve its ambitious annual economic growth target of “around 5 per cent”.
“A package of existing and incremental policies continued to take effect, industrial and service sectors grew rapidly, consumption and investment improved, employment was generally stable, and new quality productive forces grew and thrived,” the bureau said. “The national economy got off to a steady start with new and positive development momentum.”
Data for January and February is combined to smooth out the impact of the Lunar New Year holiday, which falls at a different time each year.
Leading bodies of China’s state apparatus and the ruling Communist Party issued a 30-point plan to stimulate consumer spending on Sunday, signifying consumption’s increasing importance to the overall economy.
The party’s Central Committee and the State Council, the national cabinet, pledged to promote the “reasonable growth” of incomes by boosting employment, raising the minimum wage and stepping up enforcement of the paid annual leave system. The plan also included measures to stabilise the stock and property markets.
With this plan and other initiatives, the government is taking action to revitalize domestic consumption after more than two years of sluggish demand. More spending is expected on this front after Premier Li Qiang announced the country’s fiscal deficit ratio would be raised to an all-time high of 4 per cent from last year’s 3 per cent.
