Macroeconomics

China Unveils $1.4 Trln Local Debt Package but No Direct Stimulus

November 08, 2024, 07.11 PM | Source: Reuters

ILUSTRASI. FILE PHOTO: Chinese yuan banknotes are seen in this illustration picture taken April 25, 2022. REUTERS/Florence Lo/Illustration/File Photo

CHINA - BEIJING. China unveiled a 10 trillion yuan ($1.40 trillion) debt package on Friday to ease local government financing strains and stabilise flagging economic growth, as it faces fresh pressure from the re-election of Donald Trump as U.S. president.

The measures confirm last week's Reuters report, and mark a departure from the all-out stimulus strategies to revive growth China has deployed in the past. They aim to repair municipal balance sheets as a longer-term objective, rather than directly inject money into the economy.

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