China to choose fiscal muscle over big reforms to revive economy | Reuters News Agency
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Economy
25 October 2023, 5:45 pm 1 minute
Reuters reported that China is set to unleash fresh fiscal stimulus to shore up its economic recovery, drawing on a well-used playbook that relies heavily on debt and state spending but falls short on the deeper reforms called for by a growing number of analysts. Some government advisers are recommending China lifts its 2024 budget deficit target beyond the 3% of gross domestic product (GDP) set for this year, which would allow Beijing to issue more bonds to revive the economy.
Market Impact
The world’s second-largest economy grew faster than expected in the third quarter, improving the chances Beijing can meet its growth target of around 5% for 2023. China’s parliament is set to approve just over 1 trillion yuan ($137 billion) in additional sovereign debt issuance when it concludes a five-day meeting that began on Oct. 20.
Article Tags
Topics of Interest: Economy
Type: Reuters Best
Sectors: Economy & Policy
Regions: Asia
Countries: China
Win Types: Impact (Long Term)
Story Types: Special Report / Insight
Media Types: Text
Customer Impact: Significant National Story
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