"China's Economic Growth Target for Next Year Set at 5%... Fiscal Deficit Ratio at 4% of GDP"
China plans to maintain its economic growth target around 5% next year, the same as this year, while raising the fiscal deficit target to 4% of its gross domestic product (GDP), according to major foreign media including Bloomberg on the 17th.
This year's fiscal deficit target is 3% of GDP, meaning it would increase by 1 percentage point compared to this year. The amount reaches approximately 1.3 trillion yuan (about 256 trillion won), which is expected to be raised through the issuance of special bonds. The economic growth target around 5% is at the same level as this year. Bloomberg evaluated that this target aligns with market expectations.
However, the fiscal deficit plan and economic growth target will be officially announced at the National People's Congress held in March next year, and there is a possibility of changes until then.
Earlier, on the 9th, China held a Central Politburo meeting chaired by General Secretary (President) Xi Jinping to discuss the economic policy direction for next year. Subsequently, on the 11th and 12th, the Central Economic Work Conference was held to discuss next year's economic growth target and stimulus measures. The conference announced the need to maintain steady economic growth while increasing the fiscal deficit ratio and issuing more government debt, but did not specify exact figures. However, both meetings declared that a "moderately accommodative" monetary policy would be implemented, marking a change in stance for the first time in 14 years.
Hot Picks Today
"Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Don't Throw Away Coffee Grounds" Transformed into 'High-Grade Fuel' in Just 90 Seconds [Reading Science]
- CJ Group Reports Police over Leak of Female Employees' Personal Information
- The Unexpected Story of an American Man Who Won the Lottery 18 Times in 29 Years: "My Real Luck Is My Wife"
- "Even With a 90 Million Won Salary and Bonuses, It Doesn’t Feel Like Much"... A Latecomer Rookie Who Beat 70 to 1 Odds [Scientists Are Disappearing] ③
Bloomberg explained that this change reflects China's preparation for the possibility of a second trade war with the United States ahead of the inauguration of President-elect Donald Trump in January next year. Last month, President-elect Trump announced that he would impose an additional 10% tariff on China immediately upon taking office, citing drugs as the reason. During his campaign, he stated he would impose a 60% tariff on all Chinese imports. Since September, China has introduced large-scale stimulus measures, but domestic demand has not rebounded amid concerns over a trade war with the United States.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
