Could a growing global skepticism of manufactured goods crash the world’s largest manufacturing economy?
Wednesday, June 29, 2016
Fiscal Gap Exceeds 10%
Reanalysis by two groups of economists put China’s effective fiscal deficit between 9 and 10 percent in 2015 and 10 and 12 percent in 2016 — numbers far higher than the 3 percent gap in the official budget. Fiscal measures such as local bond issues to finance real estate projects are boosting economic growth, but at tremendous cost and in a pattern that obviously can’t be sustained for two more years.