China announces new fiscal measures to support economic growth

In Beijing on October 16, 2024, Chinese finance officials announced a series of fiscal policy measures designed to bolster confidence in the economy and ensure stable growth. These measures come in response to ongoing economic challenges and are part of a broader strategy to support the country's development goals. The Minister of Finance, Lan Fo'an, emphasized the importance of these targeted policies, which will focus on local government debt risks, expanding treasury bond issues, and stabilizing the real estate market. The upcoming policies are expected to alleviate pressure on local governments by increasing the debt quota significantly. This will enable local authorities to access more financial resources, which can be redirected towards economic development and improving citizens' livelihoods. The government has already set a local debt limit of over 2.2 trillion yuan for 2023, with an additional 1.2 trillion yuan allocated for 2024 to address existing debt issues. Economists believe that these measures are crucial not only for achieving the annual development target but also for addressing structural adjustments necessary for long-term economic stability. The government has expressed confidence in its ability to meet its GDP growth target of around 5 percent for 2024, highlighting its determination to implement effective economic policies. As businesses gain confidence from these initiatives, it is anticipated that they will expand operations, further contributing to economic growth. The government's commitment to addressing local debt risks is seen as a significant step towards fostering a more resilient economic environment in China.