China Said to Defy Analysts With Plan for Unchanged Deficit
- Authorities said to propose keeping 2017 deficit at 3% of GDP
- Economists had expected larger gap to prop up growth this year
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Chinese authorities plan to propose that this year’s fiscal deficit stay at 3 percent of gross domestic product, unchanged from 2016, according to people familiar with the matter, signaling further tolerance for slower economic growth.
The budget deficit, usually announced in March, requires approval by the National People’s Congress and is subject to change, said the people, who asked not to be identified as the proposal hadn’t yet been made public. The Finance Ministry didn’t immediately respond to a faxed request for comment.