Economic news

China targets record high budget deficit of 4% of GDP in 2025 – Reuters

2024.12.17 01:01

China targets record high budget deficit of 4% of GDP in 2025 - Reuters

Investing.com– China’s top leaders have agreed to increase the country’s budget deficit to 4% of gross domestic product (GDP) in 2025, marking the highest level on record, Reuters reported on Tuesday citing unnamed sources.

The decision, made during December’s Politburo meeting and the Central Economic Work Conference (CEWC), aligns with plans for a more proactive fiscal policy to support economic growth, the report stated.

The new deficit target represents a significant rise from the previously projected 3% of GDP for 2024. The additional spending, equivalent to approximately 1.3 trillion yuan ($179.4 billion), will be funded partly through the issuance of off-budget special bonds, according to the report.

Official announcements on these targets are expected during the annual parliamentary session in March.

China is also maintaining an economic growth target of around 5% for 2024, consistent with this year’s goal, despite ongoing economic challenges such as the property market crisis, high local government debt, and weak consumer demand, the Reuters report said.

The CEWC summary emphasized the necessity of steady economic growth, alongside fiscal and monetary measures aimed at stabilizing the economy, a state media summary of the closed-door CEWC showed.

Reuters report stated that the central bank plans to adopt an “appropriately loose” monetary stance, potentially signaling more rate cuts and liquidity injections.

Additionally, China’s economy faces looming external risks, including potential U.S. tariffs exceeding 60% on Chinese goods, should President-elect Donald Trump implement his campaign pledges. Analysts warn such measures could shrink profits for exporters, exacerbate overcapacity, and weigh on economic growth.

For now, Beijing appears prepared to rely on fiscal stimulus while exploring other tools, including exchange rate adjustments, to counter external pressures, the report added.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 84,300.59 0.06%
ethereum
Ethereum (ETH) $ 1,942.76 0.99%
tether
Tether (USDT) $ 1.00 0.00%
xrp
XRP (XRP) $ 2.41 2.80%
bnb
BNB (BNB) $ 617.57 5.35%
solana
Solana (SOL) $ 135.59 1.44%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.754087 2.60%
dogecoin
Dogecoin (DOGE) $ 0.176451 3.45%
tron
TRON (TRX) $ 0.22184 0.16%
staked-ether
Lido Staked Ether (STETH) $ 1,942.27 1.26%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 84,218.56 0.10%
pi-network
Pi Network (PI) $ 1.45 3.89%
chainlink
Chainlink (LINK) $ 14.10 2.16%
leo-token
LEO Token (LEO) $ 9.71 0.70%
the-open-network
Toncoin (TON) $ 3.44 17.25%
stellar
Stellar (XLM) $ 0.275957 0.39%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,327.30 1.09%
usds
USDS (USDS) $ 1.00 0.02%
hedera-hashgraph
Hedera (HBAR) $ 0.194077 1.83%
avalanche-2
Avalanche (AVAX) $ 19.16 2.14%
shiba-inu
Shiba Inu (SHIB) $ 0.000013 0.86%
sui
Sui (SUI) $ 2.37 1.93%
litecoin
Litecoin (LTC) $ 93.12 1.64%
bitcoin-cash
Bitcoin Cash (BCH) $ 345.21 5.56%
polkadot
Polkadot (DOT) $ 4.38 4.31%
mantra-dao
MANTRA (OM) $ 6.61 5.60%
weth
WETH (WETH) $ 1,942.87 1.04%
ethena-usde
Ethena USDe (USDE) $ 0.999866 0.05%
bitget-token
Bitget Token (BGB) $ 4.46 0.92%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 0.999957 0.06%
hyperliquid
Hyperliquid (HYPE) $ 14.41 3.24%
whitebit
WhiteBIT Coin (WBT) $ 28.92 1.25%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,064.02 1.01%
monero
Monero (XMR) $ 211.88 0.91%
uniswap
Uniswap (UNI) $ 6.24 2.92%
susds
sUSDS (SUSDS) $ 1.04 0.04%
aptos
Aptos (APT) $ 5.40 3.72%
dai
Dai (DAI) $ 0.999855 0.01%
near
NEAR Protocol (NEAR) $ 2.68 2.07%
pepe
Pepe (PEPE) $ 0.000007 3.03%
internet-computer
Internet Computer (ICP) $ 5.85 3.66%
okb
OKB (OKB) $ 46.55 0.90%
ondo-finance
Ondo (ONDO) $ 0.884532 2.20%
ethereum-classic
Ethereum Classic (ETC) $ 18.01 0.03%
gatechain-token
Gate (GT) $ 21.74 1.73%
aave
Aave (AAVE) $ 174.35 0.72%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 84,278.58 0.10%
mantle
Mantle (MNT) $ 0.754863 3.15%
official-trump
Official Trump (TRUMP) $ 12.22 3.03%