‘Modest’ China Stimulus May Bolster Growth Goal, Analysts Say

New stimulus under consideration in China would raise this year’s budget deficit and ensure the economy achieves the government’s official growth target of about 5%, though more support is likely needed to boost weak demand.

That’s according to economists and analysts after Bloomberg News reported policymakers are weighing the issuance of at least 1 trillion yuan ($137 billion) of additional sovereign debt for spending on infrastructure. The discussions underscore mounting concerns among China’s top leadership over the trajectory of the world’s second-largest economy and how growth compares to the US.