Xi Says China Must Apply 'More Proactive' Macroeconomic Policies in 2025

This picture taken on December 16, 2024 shows a vendor arranging items as people shop in Harbin, China’s Northeastern Heilongjiang province.(Photo by ADEK BERRY / AFP)
This picture taken on December 16, 2024 shows a vendor arranging items as people shop in Harbin, China’s Northeastern Heilongjiang province.(Photo by ADEK BERRY / AFP)
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Xi Says China Must Apply 'More Proactive' Macroeconomic Policies in 2025

This picture taken on December 16, 2024 shows a vendor arranging items as people shop in Harbin, China’s Northeastern Heilongjiang province.(Photo by ADEK BERRY / AFP)
This picture taken on December 16, 2024 shows a vendor arranging items as people shop in Harbin, China’s Northeastern Heilongjiang province.(Photo by ADEK BERRY / AFP)

President Xi Jinping said China will put in place "more proactive" macroeconomic policies next year, state media reported, as he addressed a top political advisory body on Tuesday.

The country has struggled this year to climb out of a slump fueled by a property market crisis, weak consumption and soaring government debt.

Beijing has unveiled a string of aggressive measures in recent months aimed at bolstering growth, including cutting interest rates, cancelling restrictions on home buying and easing the debt burden on local governments.

But economists have warned that more direct fiscal stimulus aimed at shoring up domestic consumption is needed to restore full health in China's economy, AFP reported.

"We must... further comprehensively deepen reform, expand high-level opening up, better coordinate development and security, (and) implement more proactive and effective macroeconomic policies," state broadcaster CCTV quoted Xi as telling the National Committee of the Chinese People's Political Consultative Conference at a New Year's tea party.

Beijing is aiming for an official national growth target this year of about five percent, a goal officials have expressed confidence in achieving but which many economists believe it will narrowly miss.

"The new quality productivity develops steadily, and annual GDP is expected to grow by about five percent," Xi reiterated on Tuesday.

The International Monetary Fund expects China's economy to grow by 4.8 percent this year and 4.5 percent next year.

Xi's comments came as Chinese authorities released optimistic factory activity figures, a sign that recent stimulus measures may be starting to take effect.

China's Purchasing Managers' Index (PMI) -- a key measure of industrial output -- was 50.1 in December, marking a third consecutive month of expansion, the National Bureau of Statistics said on Tuesday.

The figure was lower than Bloomberg analysts' prediction of 50.2, but still above 50, which indicates an expansion in manufacturing activity.

A reading below that shows a contraction.

The key indicator slid for six months in the middle of the year before returning to expansion territory in October.

The non-manufacturing PMI, which measures activity in the service sector, came in at 52.2 in December, up from 50.0 in November.

"The official PMIs suggest that the economy gained momentum in December, driven by faster growth in the services and construction sectors," Gabriel Ng of Capital Economics wrote in a note to clients Tuesday.

"Increased policy support towards the end of the year has clearly provided a near-term boost to growth," Ng wrote.

Ng noted that export orders in particular rose to a four-month high in December, "probably helped by US importers ramping up orders in advance of potential Trump tariffs.”



Pakistan Set to Receive $20 Billion Loan From World Bank

FILE PHOTO-People wait for their turn to buy low-priced bun-kabab from a shop in Karachi, Pakistan June 10, 2022. REUTERS/Akhtar Soomro
FILE PHOTO-People wait for their turn to buy low-priced bun-kabab from a shop in Karachi, Pakistan June 10, 2022. REUTERS/Akhtar Soomro
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Pakistan Set to Receive $20 Billion Loan From World Bank

FILE PHOTO-People wait for their turn to buy low-priced bun-kabab from a shop in Karachi, Pakistan June 10, 2022. REUTERS/Akhtar Soomro
FILE PHOTO-People wait for their turn to buy low-priced bun-kabab from a shop in Karachi, Pakistan June 10, 2022. REUTERS/Akhtar Soomro

Pakistan is set to receive a loan of $20 billion from the World Bank over the next 10 years, aimed at improving the country’s key sectors, sources told Geo News on Saturday.

According to sources in the Ministry of Economic Affairs, the loan will be part of the World Bank's support under the Country Partnership Framework 2025-35, which focuses on sustainable economic development.

The loan is expected to be approved by the WB's Board of Directors on January 14. Once approved, Martin Raiser, the lender's Vice President, is expected to visit Islamabad to discuss the loan program and its implementation.

In addition to the $20 billion, two subsidiary entities of the World Bank will assist Pakistan in securing another $20 billion in private loans.

This would bring the total financial package to $40 billion, which will be allocated towards infrastructure development, climate resilience projects, and improving social services.

Meanwhile, The News newspaper reported that the government, in its bid to achieve an economic revival, has launched the National Economic Transformation Plan which aims to achieve ambitious economic targets, including doubling GDP growth and halving poverty over a five-year period.

The plan envisages attracting $29 billion anticipated investment under the supervision of the Special Investment Facilitation Council (SIFC) including $10 billion from the UAE, $5 billion from Saudi Arabia, $2 billion from Qatar, $2 billion from Azerbaijan, and $10 billion from Kuwait.

Meanwhile, the gross domestic product (GDP) target has been set at 6% of the GDP till the Fiscal Year 2028-29 whereas the per capita income in dollar terms is projected to go up to $2,405 from $1,680.