Skip to main content

Near-term fiscal boost, follow-up measures needed

Local governments have been told to issue and spend their remaining special bond quotas by end-October, which will boost fiscal outlays in the near-term. But more needs to be done to prevent a premature withdrawal of support later in the year. On its own, a proposed swap of LGFV debt for government bonds won’t do much to create additional fiscal space.

Meanwhile, we expect next week’s data releases to add to concerns surrounding China’s economy. Exports and credit growth are likely to disappoint, while headline CPI will slip into deflationary territory.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access