MNI BRIEF: China To Maintain Active Fiscal Policy - Ministry

China's fiscal policy must be more proactive and sustained in 2025 to support the economic recovery, achieve the objectives of the 14th Five-Year Plan and lay a solid foundation for the 15th Five-Year Plan, according to the The Ministry of Finance’s report on China's fiscal policy in 2024, released on Monday. 

The ministry will pay more attention to benefiting people's livelihood and promoting consumption, while making efforts to prevent and resolve risks in key areas, the report said, emphasising the need to increase transfer payments to local governments and enhance local financial resources this year.

China’s low levels of inflation provide ample room for additional fiscal and monetary stimulus, a senior policy advisor recently told MNI, adding that the central bank should continue to support the yuan, but currency depreciation should not limit its easing. (See MNI INTERVIEW: Low Inflation Gives Room For More China Easing)