Update: China Scraps GDP Growth Target, Boosts Budget Deficit Amid Coronavirus Pandemic

Caixin Global | May 22, 2020 at 9:35 PM
  • China abandoned its decades-old practice of setting a target for annual economic growth, prioritizing instead the goals of stabilizing employment, alleviating poverty and preventing risks in 2020, as the impact of the Covid-19 pandemic made it almost impossible to fix an expansion rate this year.
  • Macquarie analysts estimate this broader fiscal deficit will be around 8.3% of GDP.
  • The quota for local government SPB was set at 3.75 trillion yuan, almost 75% higher than 2019’s 2.15 trillion yuan, a reflection of the government’s strategy to support economic growth by boosting state-led infrastructure investment.