Chinese leaders surprised the world last week with wide-ranging stimulus measures and a rallying cry to Communist Party officials to boost the property sector, consumption, and capital markets in the face of economic challenges in 2024.
China’s past large-scale stimulus efforts are examined, and predictions for the future are made by international investment banks.
How big could this round of stimulus be?
The estimated total size of China’s latest stimulus package, including recent announcements, is approximately 7.5 trillion yuan (US$1.07 trillion), equivalent to 6% of the country’s GDP in 2024 according to Deutsche Bank.
This stimulus could potentially be the largest in history, in nominal terms, if all measures are implemented as announced by the People’s Bank of China.