Fitch expects a more modest fiscal consolidation in China this year

Analysts at Fitch rating agency say the Chinese government planned fiscal consolidation in 2021 is more modest than the agency previously expected.



  • China strikes cautious note on fiscal consolidation
  • estimate consolidated fiscal deficit will moderate to 7.5% of GDP this year, from 9% in 2020
  • baseline forecasts suggest Chinese government debt-to-gdp ratio will rise to about 57% by end-2021, up by 10pp from end-2019


(The implication of all this is even more stimulus is ahead in China than previously thought)