China's Ministry of Finance has confidently reaffirmed its 3% deficit ratio for 2024, labeling it as \"moderate\" and \"rational\" despite Fitch Ratings' recent downgrade of China's credit outlook. 📈
In a statement posted on its website, a ministry spokesperson emphasized that Fitch's assessment overlooked the proactive and long-term benefits of China's fiscal policy adjustments aimed at high-quality development. 🌟
The official highlighted the importance of maintaining a balanced deficit and strategic debt usage to boost domestic demand and economic growth, ultimately safeguarding China's sovereign credit reputation. 💪
\"Setting the 2024 deficit ratio at 3% is a sensible and pragmatic choice,\" the spokesperson noted, adding that it supports steady economic expansion and effective government debt management. This approach also provides enough policy flexibility to tackle future challenges and risks. 🛡️
On the topic of local government debt, the ministry assured that repayment of principal and interest on legal debts is well guaranteed, and efforts are underway to resolve hidden debts. 🏦
Reflecting on the 5.2% GDP growth in 2023 and the target of around 5% for this year, the ministry expressed China's commitment to high-quality growth. This dedication reinforces the positive momentum of the Chinese economy and its steadfast ability to maintain a solid sovereign credit standing. 🚀
Despite Fitch maintaining China's sovereign credit rating, the agency adjusted its outlook from \"stable\" to \"negative\" on Wednesday, citing concerns over financial health. ⚠️
But China's finance ministry isn't fazed! They're doubling down on strategies to keep the economy thriving, proving that they're all about that growth mindset. 🌱✨
Reference(s):
Finance Ministry defends China's 3% deficit ratio as prudent
cgtn.com
