- Today, China’s National People’s Congress (NPC) opened without announcing a GDP growth target for the first time since 1994.
- Nevertheless, the size of this year’s augmented fiscal deficit will likely amount to around 8% of GDP, with focus on infrastructure and employment.
- Moreover, money supply will be “significantly” higher than in 2019. Special support will be given to SMEs. Monetary policy will be “prudent” but also more flexible.
- Overall, the Beijing continues to pursue a measured approach, striking a balance between supporting the economy and not worsening the debt situation too much.