Market Outlook: Goldman Says China Could Maintain 5% GDP Growth Target Next Year

Goldman Sachs analysts believe that China is likely to maintain its GDP growth target of "around 5%" in 2025, similar to this year's target. Goldman maintains the view that policymakers could increase the official budget deficit target from the current 3.0% to 3.6% of GDP in 2025. The firm also sees a significant possibility that Beijing may substantially raise the special bond issuance quotas for both the central government and local governments. The institution expects the total net issuance of government bonds to rise from 9 trillion CNY in 2024 to approximately 12 trillion CNY in 2025. Analysts at the firm believe that fiscal policy will play the heaviest role in stabilizing growth.