China, the second-biggest economy in the world, is facing difficulties in its post-Covid recovery, including as muted consumer demand, sluggish exports, dwindling foreign investment, and a worsening real estate issue.
Under a bond issuance and investment plan unveiled in October to strengthen the economy, China’s top planning agency has picked a second batch of public investment projects, including flood control and disaster relief programs.
The National Development and Reform Commission (NDRC) stated on Saturday that it has identified 9,600 projects worth more than 560 billion yuan.
With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.
The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.
The agency stated that it will work with other government agencies to ensure that funds are allocated quickly for investment and that high quality standards are maintained in project building. (1 US dollar = 7.1315 Chinese yuan renminbi)
The world’s second-largest economy, China’s, is fighting to regain its footing post-Covid, as officials battle with sluggish consumer demand, weak exports, dwindling foreign investment, and a worsening real estate crisis.
