This comes after the meeting among top Chinese officials last week, via its central economic work conference. The economic target will be the same as this year, which China is largely expected to hit after Xi boasted about it earlier this month.
Meanwhile, China is said to be planning a record budget deficit of 4% of GDP for next year. That will be a step up from the target of 3% of GDP for this year. For some context, this added 1% of GDP in spending should amount to roughly ¥1.3 trillion. The sources say that the additional stimulus will be funded via issuing off-budget special bonds.
Just be wary that all of these plans could still possibly change depending on developments in the next few months. The official target is typically announced in March during the National People's Congress (NPC) session.
This article was written by Justin Low at
www.forexlive.com.
