China Could Raise Budget Deficit to Top 4 Percent of GDP – PBOC Researcher

China could in theory raise its budget deficit to more than 4 percent of gross domestic product to help support growth, a senior central bank researcher wrote in a commentary posted late on Wednesday.

China has been expected to run a larger budget deficit this year as leaders turn to government spending to arrest the slowdown in the economy after disappointing returns from a year of monetary policy easing.

“In the near future, it’s possible to raise China’s fiscal deficit rate to 4 percent, or even higher,” Sheng Songcheng, director of the Survey and Statistics Department at the People’s Bank of China (PBOC) wrote on “The Economic Daily” website.

Reuters

Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.