Item 1 of 3 People stand at an observation deck with a view on office buildings of Beijing’s central business district (CBD), China, November 12, 2025. REUTERS\/Maxim Shemetov\/File Photo<\/p>\n
[1\/3]People stand at an observation deck with a view on office buildings of Beijing’s central business district (CBD), China, November 12, 2025. REUTERS\/Maxim Shemetov\/File Photo Purchase Licensing Rights, opens new tab<\/a>Xi hails ‘extraordinary’ yearSays China is forecast to reach 5% growth targetPledges could allay worries over second-half slowdown<\/p>\n BEIJING, Dec 31 (Reuters) – China is on track to meet its growth target of around 5% this year and will roll out more proactive policies in 2026, President Xi Jinping said on Wednesday, amplifying promises for more stimulus to power economic growth.<\/p>\n China’s GDP was on track to reach around 140 trillion yuan ($20 trillion) after an “extraordinary” year, Xi told a New Year’s tea party of top Chinese Communist Party officials, state broadcaster CCTV reported.<\/p>\n Sign up here.<\/a><\/p>\n Xi did not mention specific policies but his message reinforced recent government pledges<\/a> of fiscal measures to boost people’s incomes and support consumption and investment.WORRIES OVER SECOND-HALF SLOWDOWN<\/p>\n Forceful fiscal steps could allay worries over the slowdown seen over the second half of the year in the world’s second-largest economy.<\/p>\n At an agenda-setting economic meeting earlier this month, Chinese leaders promised to maintain a “proactive” fiscal policy next year including “special actions to boost consumption”.<\/p>\n Chinese leaders have also acknowledged a “prominent” imbalance between strong domestic supply and demand weakness.<\/p>\n “Our country’s economy is expected to move forward under pressure … showing strong resilience and vitality,” Xi told Party officials on Wednesday.<\/p>\n The country will promote effective qualitative improvement and reasonable quantitative growth in the economy, while maintaining social harmony and stability, Xi said.<\/p>\n The leader is due to address the nation in a televised message on Wednesday evening.<\/p>\n MARKETS END YEAR ON HIGH NOTEThe Shanghai Composite Index (.SSEC), opens new tab<\/a><\/p>\n China’s yuan breached the psychologically important 7-per-dollar level for the first time in 2-1\/2 years this week, and is on track for its biggest annual rise since 2020.<\/p>\n China set an “around 5%” growth target for 2025, even as momentum faltered<\/a> towards year-end, weighed down by soft household consumption, persistent deflation and a prolonged property sector crisis.The central government has allocated<\/a> 62.5 billion yuan from special treasury bond proceeds to local governments to fund a consumer goods trade-in scheme<\/a> next year, which aims to boost the economy by offering consumers subsidies to replace domestic appliances.China’s state planner has also released early investment plans<\/a> for 2026, including two major construction projects, involving about 295 billion yuan in central budget funding.<\/p>\n ($1 = 6.9885 yuan)<\/p>\n Reporting by Liz Lee, Shi Bu and Yukun Zhang; Editing by Tom Hogue, Sam Holmes and Andrew Heavens<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n