Does China have the fiscal firepower to rescue its economy?
There is a fierce debate over whether it can afford to keep spending
MAASTRICHT IS A small Dutch city that casts a big economic shadow. European leaders gathered there in 1992 to sign the treaty that led to the euro. Serenaded by a marching band, they vowed to keep their budget deficits below 3% of GDP and their government debt below 60%.
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This article appeared in the China section of the print edition under the headline “Can China afford to keep spending?”
From the January 11th 2025 edition
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