“The mainstay of policy this year is fiscal spending and government investment, while the central bank is only playing a supportive role so far,” said David Qu, China economist at Bloomberg Economics. “There’s still a lot of space for a stronger fiscal policy, which is more effective in supporting growth now.”
China’s plans to bolster growth as Covid outbreaks and lockdowns crush activity will see a whopping US$5.3 trillion pumped into its economy this year.
The figure – based on Bloomberg’s calculation of monetary and fiscal measures announced so far – equates to roughly a third of China’s US$17 trillion economy, but is actually smaller than the stimulus in 2020 when the pandemic first hit. That suggests even more could be spent if the economy fails to pick up from its current funk – a possibility raised by Premier Li Keqiang earlier this week.
