Covid-19 impact: China projects deficit-to-GDP ratio at over 3.6% in 2020

China has decided not to set goals on the GDP growth in 2020 amid the Covid-19 pandemic, Government Work Report as stated by The Global Times

China has projected deficit-to-GDP ratio at more than 3.6 per cent in 2020, said a government report on Friday.

"China's deficit-to-GDP ratio this year is projected at more than 3.6 per cent, 0.8 percentage points higher than that of last year," according to the Government Work Report as stated by The Global Times.

The deficit increase is projected at 1 trillion yuan over last year's 2.76 trillion yuan, according to the report delivered by Premier of the State Council Li Keqiang at the opening of the third session of the 13th National People's Congress on Friday.

China has decided not to set goals on the GDP growth in 2020 amid the Covid-19 pandemic, the report said.

According to Xinhua, the country will work to ensure achieving the development goals of winning the battle against poverty but will not set a specific economic growth target for 2020.

The work report further said that the country has set a goal to eradicate poverty this year despite the coronavirus pandemic.

"This year, we must give priority to stabilizing employment and ensuring living standards, win the battle against poverty, and achieve the goal of building a moderately prosperous society in all aspects," the report said.

Moreover, China is going to issue public bonds worth 9 trillion yuan (USD 1.26 trillion) to fight the Covid-19 pandemic.

Premier Li Keqiang also said that Beijing is ready to boost international cooperation on fighting the Covid-19 pandemic and to work on stabilizing the global economy affected by the deadly contagion.

The novel coronavirus which was first reported in the Chinese city of Wuhan has so far affected 5,101,400 people globally and claimed 332,876 lives, according to Johns Hopkins University.