Market Outlook: Goldman Predicts China Could Achieve 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 its view that policymakers could raise the official budget deficit target from this year's 3.0% to 3.6% of GDP in 2025. The firm also sees a possibility that Beijing will significantly increase the quota for special bond issuance by the central government as well as that of local governments. The institution expects 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 do the heaviest lifting to stabilize growth.