CHINA’S NPC CONTINUES MEASURED APPROACH TO COVID-19 CRISIS
Today, China’s National People’s Congress started after being postponed due to the corona shut-down from mid-March. It is scheduled to last until May 28. PM Li Keqiang presented the 2020 Government Work Report at the opening session. This speech typically contains last year’s achievements as well as the policy outlook for the current year.
- Today, China’s National People’s Congress (NPC) opened without announcing a GDP growth target for the first time since 1994.
- Nevertheless, the size of this year’s augmented fiscal deficit will likely amount to around 8% of GDP, with focus on infrastructure and employment.
- Moreover, money supply will be “significantly” higher than in 2019. Special support will be given to SMEs. Monetary policy will be “prudent” but also more flexible.
- Overall, the Beijing continues to pursue a measured approach, striking a balance between supporting the economy and not worsening the debt situation too much.