Skip to main content

Fiscal drag now turning to fiscal boost

The debate about China’s economic outlook hinges on what caused growth to slow early in 2015. One of the main culprits, in our view, was fiscal policy, which tightened significantly in late-2014 and early this year. Fortunately, most of this fiscal drag is now being reversed and we think a cyclical rebound is on the cards as a result.

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.