From CNBC: 2025-03-16 22:17:31

China’s economy saw a modest pickup in the first two months of the year, with retail sales up 4.0% and industrial production climbing 5.9%. Fixed asset investment rose by 4.1%, beating economist estimates. Beijing aims to stimulate domestic consumption with plans to stabilize the stock market and boost tourism.

Chinese leadership sets a growth target of “around 5%” despite challenges from rising trade tensions and deflationary pressures. Beijing may need stronger stimulus to achieve the target and fill the gap left by potentially slowing exports. Consumer price inflation fell below zero in February, prompting a revision of the annual inflation target to “around 2%.”

Chinese leaders have pledged an additional 300 billion yuan for consumers’ subsidy support as part of an expanded fiscal package. The current stimulus measures have not directly targeted consumers. The move to revise down the annual inflation target to “around 2%” is seen as an official acknowledgment of the deflationary environment in China.

Read more: China retail sales strengthen at start of 2025, industrial data beats