China’s plans to bolster growth as Covid outbreaks and lockdowns crush activity will see a whopping $5.3 trillion pumped into its economy this year.
The figure — based on Bloomberg’s calculation of monetary and fiscal measures announced so far — equates to roughly a third of China’s $17 trillion economy, but is actually smaller than the stimulus in 2020 when the pandemic first hit. That suggests even more could be spent if the economy fails to pick up from its current funk — a possibility raised by Premier Li Keqiang earlier this week.
Bloomberg’s calculation of financial support pledged so far for 2022 amounts to 35.5 trillion yuan. On the fiscal side, we’ve added China’s general budget expenditure with the amount of money issued through local government special bonds and tax and fee cuts. Monetary policy support includes hundreds of billions of yuan in liquidity unleashed by the People’s Bank of China through policy loans, cuts to reserve ratios for banks, as well as cheap loans to help small businesses and green projects during the pandemic.
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China’s Stimulus Tops $5 Trillion as Covid Zero Batters Economy – Bloomberg
