China’s finance ministry says it’ll step up the pace of fiscal spending

Markets will be happy to hear this. I wonder how true it is?

Report from China’s finance ministry:

• Increasing negative impacts from changes in the external environment present numerous difficulties and challenges to China’s economy – Finance Ministry report.
• 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

Bolding above is mine – comments that’ll be particularly attractive to the market.

This article was written by Eamonn Sheridan at www.forexlive.com.