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.

Also:

 

  • 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)