This issue provides an overview of the macroeconomic trends in Q4 2019, some policy updates and hot topic analysis.
Here are some macro-economic highlights:
Aggregate financing went up by 10.7% in 2019.
According to data from the People’s Bank of China, by the end of 2019, total aggregate financing to the real economy (AFRE) reached 251.31 trillion yuan, and went up by 10.7% year on year. The cumulative amount of ARFE growth was 25.58 trillion yuan in 2019 or 3.08 trillion yuan more than in 2018.
Fiscal spending went up by 8.1% in 2019, while the fiscal deficit rate increased to 4.89% of GDP.
In 2019, the general public budget revenue increased by only 3.8% to 19.04 trillion yuan, which was the lowest growth rate in 30 years due to slower GDP growth. Furthermore, as a result of policy measures of cutting taxes and fees, the growth rate was much less than in 2018 when it was 6.2%. Total general public budget revenue in 2019 was 0.7 trillion yuan more than in 2018.
In December 2019, China’s central government unveiled the “Outline of integrated development of Yangtze River Delta”, a comprehensive report to describe the blueprint of the region’s development by 2025. It has officially documented the Yangtze River Delta (YTD or the Delta) integration as one of the national development strategies, while others include the Belt and Road Initiative, Beijing — Tianjin — Hebei (or Jingjinji) Collaborative Development, Yangtze River Economic Belt (a much larger area than the Yangtze River Delta), and Guangdong — Hong Kong — Macao Greater Bay Area (the Greater Bay Area ).
China Tax Leader, Central China Markets Leader, Shanghai Office Lead Partner, PwC China
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