We analyze the proactive fiscal policy of China in 2022, investigated government debt sustainability amid growth slowdown and make policy suggestions of financing fiscal deficits.
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- Regional Analysis China
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We analyze the proactive fiscal policy of China in 2022, investigated government debt sustainability amid growth slowdown and make policy suggestions of financing fiscal deficits.
It sounds paradoxical and contradictory, but taking care of public spending today will result in a worse fiscal position in a few months, in an increase in country risk and in further reductions in the sovereign rating.