Authorities to keep their foot on pedal with monetary and fiscal policy, supporting GDP growth – TDS

As we kick off 2024, China’s economic outlook remains clouded. Economists at TD Securities lay out their expectations for fiscal and monetary policy this year.

China is starting 2024 on soft footing

China is starting 2024 on soft footing, even after the stimulus measures announced in 23Q4. 

As fiscal funds raised late last year get deployed into the economy, authorities will be paying close attention to the 24Q1 economic data before reassessing the economic trajectory. 

We believe authorities won’t take their foot off the pedal and will employ fiscal and monetary policy tools to ensure China GDP growth reaches around the 5% mark this year.

 

Source: https://www.fxstreet.com/news/china-authorities-to-keep-their-foot-on-pedal-with-monetary-and-fiscal-policy-supporting-gdp-growth-tds-202401120727