Fitch: A more modest fiscal consolidation likely for China this year

In the view of the analysts at Fitch Ratings, China’s planned fiscal consolidation in 2021 is likely to be more modest than previously expected.

Additional headlines

“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.”

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