Chinese leaders have agreed to increase the 2024 budget deficit to 4% of GDP, the highest on record, in a bid to support economic growth amid ongoing challenges, including a weakening property market and weak consumer demand. The increased deficit, about 1.3 trillion RMB ($179.4 billion), will be funded through off-budget special bonds, reflecting a more proactive fiscal policy. The government has also set a growth target of around 5%, with hopes that fiscal and monetary stimulus will counter the impact of potential US tariffs under the incoming Trump administration. While fiscal stimulus is expected to play a significant role, analysts predict the recovery will take time, and China may consider further tools like currency devaluation to manage trade pressures.