Fiscal Stimulus Expected in China
Burc Oran
December 13, 2021
Fiscal stimulus expected in China

At a time when downside risks in global growth are prominent, China is expected to support growth-friendly policies next year.

Economists expect the country to begin ramping up fiscal stimulus in early 2022, as top officials note that their key goals for the coming year include balancing growth pressures and stabilizing the economy.

While economists expect restrictions on the real estate sector to continue, they say there may be fewer regulatory surprises in 2022, from tech to education and entertainment. At the end of the three-day annual Central Economic Labor Conference, the Party’s decision-makers said on Friday that the top priority for next year is to “ensure stability.” They made statements on maintaining a flexible and appropriate monetary policy stance.

China’s economy has slowed in recent months as problems in the real estate market worsen, weak consumption growth, and the impact of the successive Covid-19 outbreaks wreaking havoc on the confidence of businesses and consumers.

The relatively hawkish policies on real estate at the meeting point out that the real estate sector problem still continues to an extent.

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