Yu Yongding: The key to China's economic growth next year lies in the expansion of fiscal policy.

The "2025 SanyaFinance International Forum and the 5th Sanya Wealth Management Conference" was held on December 27th. Renowned economist Yu Yongding stated during his speech that the key to whether China's economic growth rate can be maintained at 5% next year lies in the extent of fiscal policy expansion. Historical experience tells us that increasing infrastructure investment is an effective policy tool to address insufficient effective demand, promoting long-term economic stable growth and short-term demand deficiencies. Yu Yongding mentioned that in recent times, Western scholars have repeatedly emphasized that investment is driving China's economy to the brink of collapse, a view he does not agree with. He pointed out that the notion that China has low investment efficiency is one-sided. Indicators of production efficiency include labor productivity, capital productivity, capital output ratio, or total factor productivity. China's labor productivity continues to improve, otherwise its per capita income would not have increased.