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Economic Research

More on the Chinese Fiscal Stimulus

The Chinese fiscal stimulus has provoked much debate since being announced last Sunday as analysts try to assess its impact. Will it succeed in cushioning China's economic performance, will it contribute to more domestic imbalances? a first area of debate fixates around how much of the investment to be approved is "new" that is not included in the current 5 year plan and budgeted as such. Around 1/3-1/2 of the projects seem to be new, previously unannounced spending while much of it is a compilation of initiatives already announced or items that were already scheduled in the current[...]

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