China boosts budget deficit target to 'around 4%' of gross domestic product in a rare move
Published On Mar 4, 2025, 7:28 PM
China has announced a revised fiscal budget deficit target of approximately 4% of its GDP, up from 3% last year. This marks the highest fiscal deficit since 2010 and reflects the country's response to economic pressures, including an ongoing trade war with the US and a real estate market slump. The government plans to boost its quota for special bond sales significantly, aiming to tackle issues related to local government debt and support economic recovery.
Stock Forecasts
ASHR
Positive
The increase in fiscal deficit indicates a proactive approach by the Chinese government to stimulate economic growth amidst external and internal pressures. This may lead to increased government spending in key sectors, benefiting companies involved in infrastructure and public services.
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