The full proposals for China’s upcoming Five-Year Plan have just been published. These make it clear that fiscal policy will play a key role in the leadership’s efforts to lift the consumption-to-GDP ratio. As a result, the share of fiscal spending devoted to investment, which is currently at a three-decade high, should start to drop back over the coming years. But the wider policy agenda will limit how quickly this happens, and it will take a long time for the imbalances in China’s economy to be fully addressed.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services