China Sets Boosting Domestic Demand as Top Task for 2025 — Market Talk
2024-12-13
Category: economic

China is placing higher priority on boosting domestic demand, Nomura analysts say after the CEWC. The meeting set domestic demand as the top task for 2025, up from No. 2 in 2024 and replacing promotion of industrial sectors, Ting Lu and others say. The memo from the meeting pledged a major consumption boost, including via increasing pension payments and expanding the consumer trade-in program. Programs for low-income groups are also encouraging. Overall, the CEWC backs Nomura's relatively optimistic view on fiscal policies in 2025. It thinks China may stick to an "around 5.0%" GDP growth target. Given high expectations, markets likely won't be too excited about the outcome. Nomura adds that China is not in a normal downcycle, so it may take much more than "bazooka" stimulus to truly reboot the economy.(fabiana.negrinochoa@wsj.com)