Larger fiscal deficit ratio to prevent slide in economic growth – China’s FinMin Lou

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    China’s finance minister Lou was on the wires last hours via Reuters, and advocated fiscal reforms.

    Key Quotes:

    Banks non-performing loans to rise further

    Tax reform is slower than expected

    Actual fiscal deficit to GDP ratio at 2.4 pct in 2015

    Larger fiscal deficit ratio in 2016 to prevent slide in economic growth, push forward structural reform

    Can’t raise fiscal deficit/GDP ratio by too much

    Still has room for Chinese Govt debt growth

    To step up regulation of local Govt debt

    Will improve management of local government debt to prevent debt issuing beyond budget limits
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