Support from looser fiscal policy set to wane

China’s overall fiscal stance has become increasingly loose in recent quarters on the back of a growing budget deficit and a renewed acceleration in off-budget borrowing by local government financing vehicles. With the economy now looking stronger, we expect policymakers to restart efforts to curtail off-budget spending, resulting in a tighter fiscal stance in coming quarters.  

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.

Already a client or trialist? Log in to read this.