China Announces 7.2% Increase in Defense Budget for 2025
The Chinese government announced in a report on Wednesday that the defense budget for 2025 will see a 7.2% increase, the same growth rate as in 2024. With this increase, China will allocate 1784.7 billion yuan (245.7 billion dollars) to military spending, representing approximately one-third of the US defense budget, which remains the highest in the world.
Economic Growth and Inflation Targets
In parallel, Beijing has set a 5% economic growth target for 2025, as well as a 2% inflation rate. These figures are identical to those of the previous year, as China continues to face a debt crisis in the real estate sector, rising unemployment, slowing consumption, and the consequences of the trade war initiated by former US President Donald Trump.
Job Creation and Economic Stimulus
China has also specified that it plans to create 12 million new urban jobs this year, a significant effort to address current economic challenges. The government has promised to strengthen domestic demand as the primary driver of economic growth, highlighting the need to accelerate household consumption stimulation.
Addressing Weaknesses in Domestic Demand
In its report, the Chinese government expressed its intention to quickly address the weaknesses in domestic demand, particularly among consumers, in order to make this demand the central pillar of its economic development.
