According to Business Insider, the Chinese authorities have approved an additional issuance of sovereign debt bonds. In addition, the government has introduced several amendments to the 2023 state budget to provide stimulus for the national economy. Analysts believe that the country's debt burden could be alleviated by the large-scale issuance of debt obligations amounting to $137 billion, as well as by increasing next year's budget deficit. Indeed, the Chinese economy needs extra support in the form of these additional stimuli. The Chinese government has only revealed a part of their plan. In 2024, China reportedly intends to increase its budget deficit beyond the usual 3% of GDP. Experts believe that the growing national debt may help recover the national economy, which has suffered due to the collapse in the real estate sector. Economists note that China has only adjusted its budget during periods of intense stress, such as the global financial crisis of 2008 and the major Asian crisis of the 1990s. They predict that in 2024, China's GDP growth will likely slow down to 4.5%, but the current problems will persist.
