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)