China is ramping up its fiscal strategy with plans to raise its deficit-to-GDP ratio to 4% by 2025, according to a newly released government work report. ANZ’s Greater China Chief Economist Raymond Yeung calls the move a ‘proactive policy push’ designed to harness the country’s economic momentum.
‘A 4% deficit signals confidence in China’s ability to drive sustainable growth through targeted investments and reforms,’ Yeung told CGTN reporter Wang Tianyu. He emphasized the strategy’s focus on long-term stability over short-term gains.
Experts suggest the move could unlock funding for tech innovation, green energy, and infrastructure—key sectors aligning with China’s ‘high-quality development’ goals. For young professionals and entrepreneurs, this signals opportunities in emerging markets across Asia.
What’s next? Analysts predict closer scrutiny of how funds are allocated, especially as global markets eye China’s post-pandemic recovery. Stay tuned for updates!
Reference(s):
4% fiscal deficit signals proactive policy support: ANZ's economist
cgtn.com