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Infrastructure Investment A Key 2024 Growth Driver

CHINA PRESS
MNI (Singapore)

Final consumption and net export will contribute less to GDP growth in 2024 than 2023, and will require double-digit growth in infrastructure investment to help achieve a 5% GDP, said Yu Yongding, an academic at the Chinese Academy of Social Sciences. Macro policy should aim to raise the fiscal deficit ratio significantly and increase the scale of China Government Bond issuance to provide sufficient funds for infrastructure construction, said Yu. The deficit rate should rise to 4-5% given low inflation, if enough project reserves exist, Yu added. Authorities can ease monetary policy further to stimulate demand and support government bond sales. (Source: China Finance 40 Forum)

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