China has more room to act on fiscal policy amid global uncertainties, finance minister says
Published On Mar 6, 2025, 2:49 AM
China's Finance Minister has stated that the country has significant capacity to implement fiscal policy despite uncertainties facing both domestic and global economies. The government announced a plan to increase its on-budget deficit to 4% of GDP, the highest level since 2010, alongside plans to issue 1.3 trillion yuan in special treasury bonds and increase special-purpose bonds issued by local governments. China is targeting around 5% GDP growth for the coming year with a lowered inflation target of 2%, which is projected to support consumer spending and stabilize the economy.
Stock Forecasts
MCHI
Positive
The announcement of a higher fiscal deficit and stimulative policies indicates a proactive approach by the Chinese government to counter economic challenges. This could enhance infrastructure spending and consumer incentives, positively affecting sectors like construction and consumer goods.
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