Tax & Spend

China’s Fiscal Stimulus Plan May Be Bigger Than It Appeared

  • Stimulus seen as vital for meeting around 5% growth target
  • Beijing’s budget math complicated by bond and lending programs
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China’s leadership underwhelmed investors with a seemingly restrained 2024 budget plan. But a closer look beyond the headline numbers suggests the package could pack a bigger punch than initially thought.

China kept its official budget deficit target unchanged at 3% of gross domestic product, but that underplays government support because it leaves out a large amount of investment spending.