China’s 2025 stimulus to boost growth but debt risks rise: Fitch
China’s 2025 fiscal stimulus supports growth but raises debt concerns, with the deficit rising to 8.8 per cent of GDP. Revenue declines and debt swaps push government debt above 60 per cent of GDP. Policies focus on supply-side measures such as industrial investments. Monetary easing and potential renminbi depreciation are expected amid US tariff hikes. Fitch projects 4.3 per cent GDP growth in 2025.
China’s 2025 fiscal stimulus supports growth but raises debt concerns, with the deficit rising to 8.8 per cent of GDP.
Revenue declines and debt swaps push government debt above 60 per cent of GDP.
Policies focus on supply-side measures such as industrial investments.
Monetary easing and potential renminbi depreciation are expected amid US tariff hikes.
Fitch projects 4.3 per cent GDP growth in 2025.
