Free Trial

China To Keep Deficit, Debt Levels High In 2023 - Yicai

MNI (Singapore)

China may maintain relatively large deficits and debt next year to cope with weakening external demand and insufficient domestic demand, as the Politburo meeting this week called for a step up in proactive fiscal policy for 2023, reported. Analysts predict the budget deficit-to-GDP ratio could be raised to 3% or slightly above from 2.8% in 2022, the newspaper said. Fiscal pressure remains given less surplus funds are available, though setting the deficit rate at 3.1% will unleash over CNY4 trillion in funds, the newspaper said citing Gao Ruidong, chief macro economist of Everbright Securities. Gao expects the scale of new local government special bonds to be around CNY4 trillion, and sees a growing urgency for the issuance of special Treasury bonds, the newspaper said.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.