Skip to main content

Bumps in the road but no fiscal cliff

Yesterday's budget left us none the wiser about how policymakers plan to manage the abrupt halt in off-budget financing that new rules are imposing on local governments this year. There could be some short-lived disruption to spending as a result. But Premier Li and Finance Minister Lou are not China's Thelma and Louise: they would relax the new rules rather than drive the economy off a fiscal cliff.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.