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China’s Wide Budget Deficits Set to Drive Further Rise in Debt

The step-up in fiscal stimulus announced by China’s government for 2025 will support the economic outlook, but the large budget deficit points to a continued rise in government debt in the next few years, says Fitch Ratings. Deteriorating public finances were the key factor behind our decision to revise the Outlook on China’s ‘A+’ sovereign rating to Negative in April 2024. […]