China’s 4% Fiscal Deficit Signals Proactive Economic Strategy, Says ANZ Economist

China plans to raise its deficit-to-GDP ratio by one percentage point to 4 percent in 2025, according to the government work report. Raymond Yeung, ANZ Greater China Chief Economist, says this move signals a proactive policy push, leveraging China’s economic momentum for future growth.

In an interview with CGTN reporter Wang Tianyu, Yeung stated, “The 4 percent fiscal deficit reflects a proactive stance in policy-making. It shows that the government is willing to use fiscal tools to support economic growth.”

The increase in the fiscal deficit aims to stimulate domestic demand and invest in key sectors, positioning China for sustained growth amid global economic challenges.

Reference(s):

4% fiscal deficit signals proactive policy support: ANZ's economist

cgtn.com