China's Leadership to Boost Financial Spending to Support a Shaky Economy

Forex - The Beijing administration's provision of more details regarding its economic planning for the upcoming year indicates that the Chinese leadership is finally prepared to increase fiscal spending to support the shaken economy. According to China Central Television, Chinese decision-makers, including President Xi Jinping, mentioned during a meeting on Thursday that the government will raise the fiscal deficit ratio in 2025 and will lower interest rates and required reserve ratios without specifying a timeline. Officials at the Central Economic Work Conference also pledged to focus on boosting domestic demand, including consumption, in 2025, vowing to better balance demand and supply in the world's second-largest economy. Chinese leaders reiterated their commitment to stabilizing the real estate and stock markets and to preventing risks arising from key sectors and external shocks. This important economy-themed meeting followed another gathering of China's top leaders on Monday, as Beijing signaled a stronger policy approach to invigorate the economy while anticipating trade tensions under the new Trump administration.