China’s finance ministry stated early Wednesday that the government will increase the intensity of fiscal spending and will adopt more proactive, sustainable, robust, and effective fiscal policies in 2025.
Key quotes
Increasing negative impacts from changes in the external environment present numerous difficulties and challenges to China’s economy.
This will increase pressure for China to maintain a balanced budget in 2025.
China’s sustained economic recovery and growth will support an increase in fiscal revenue, but many constraints will remain.
Insufficient domestic demand and price levels will continue to weigh down government revenues, which are calculated based on current prices.
Some major tax-contributing industries are experiencing a slowdown in growth, while some firms face difficulties in production and operations.
China is also confronted with considerable uncertainty in foreign trade.
China will continue to leverage fiscal policy to implement counter-cyclical adjustments.
China will increase the intensity of fiscal spending.
China will implement a more proactive fiscal policy and improve the fiscal spending structure.
China will adopt more proactive, sustainable, robust, and effective fiscal policies in 2025.
China will accelerate the pace of fiscal spending.
Market reaction
At the time of writing, AUD/USD is holding higher ground near 0.6255, adding 0.09% on the day.
