0620 GMT - Communication by Chinese policymakers suggests they are likely to react not "pre-act" to potential tariff hikes, Goldman Sachs economists say. This implies a relatively low chance that 2025 budget numbers at the "Two Sessions" meeting in March will significantly beat expectations, they write. But if growth headwinds strengthen sharply, the door is open to additional stimulus beyond the budget, they say. GS expects China to keep real GDP growth target unchanged at around 5% for 2025, lower the consumer inflation target to around 2% from around 3%, and raise the official fiscal deficit target to 4.0% of GDP from 3.0% in 2024. Quotas for central and local government special bonds could be raised too. With consumption a top priority, China may also unveil details on consumption stimulus, GS says. (fabiana.negrinochoa@wsj.com)

(END) Dow Jones Newswires

February 20, 2025 01:20 ET (06:20 GMT)

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