China‘s Economic Incentives Continue
Announcing that they are targeting an economic growth of 5.5 percent this year, China continues its incentives. It has been noted that China’s incentives for its economy have reached the level of 5 trillion dollars.
China has decided to provide $5.3 trillion in support to economic markets as the increase in coronavirus cases and sanctions undermine economic activity.
The figure, which corresponds to one-third of China’s $17 trillion economy, is smaller than the support given after the first wave of the pandemic in 2020.
In his statement at the beginning of the week, Prime Minister Li Keqiang pointed out that this figure could increase if the economy could not get out of the negative environment it was in.
“The mainstay of policy this year seems to be budget spending and government investment, with the central bank’s support role so far. There is still room for stronger fiscal policy, which is a much more effective way to support growth.”
Financial support so far has been recorded as approximately 35.5 trillion yuan. On the budget side, this figure consists of general budget expenditures, tax and fee cuts to be made together with special bonds issued by local governments.