China Deficit to Exceed Limit as Spending Mounts, Economists Say
- Six out of 13 analysts see deficit at 2.6%-3% of GDP in 2016
- Spending has jumped 18.1% in first 10 months of this year
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China’s increased government spending may see the budget deficit exceed the official target this year as policy makers shift reliance to fiscal support given the failure of monetary easing to spur a pick up in growth.
Spending will surpass the budget deficit ratio of 2.3 percent of gross domestic product by year end, according to eight of 13 economists in a Bloomberg News survey conducted from Nov. 12-17. All but one said the government will increase the ratio next year or keep it unchanged, and six project the target will rise to between 2.6 and 3 percent.