{"id":141766,"date":"2024-11-09T10:00:47","date_gmt":"2024-11-09T08:00:47","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/?p=141766"},"modified":"2024-11-08T14:55:29","modified_gmt":"2024-11-08T12:55:29","slug":"china-begins-stimulus-plan-to-address-debt-and-spur-economic-growth","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/china-begins-stimulus-plan-to-address-debt-and-spur-economic-growth\/","title":{"rendered":"China Begins Stimulus Plan to Address Debt and Spur Economic Growth"},"content":{"rendered":"

This comes after previous interest rate cuts, but analysts suggest China<\/a> <\/strong>must spend up to $1.4 trillion annually to recover from a prolonged property slump.<\/p>\n

The National People\u2019s Congress approved this fiscal expansion, raising the local government debt ceiling from 29.52 trillion yuan to 35.52 trillion yuan. The government\u2019s hidden debt surpassed 14 trillion yuan by 2023, with plans to reduce it to 2.3 trillion yuan by 2028. The IMF reports the total government debt at 147 trillion yuan, or 117% of GDP.<\/p>\n

While the scale of the overall stimulus is still unclear, analysts expect an increase in debt issuance to up to 10 trillion yuan in the coming years, potentially reducing annual interest payments. The package is focused on long-term structural issues rather than immediate recovery, with little direct consumer support. Economists warn that while the stimulus is vital to meet growth targets, it may not significantly boost domestic consumption or confidence.<\/p>\n