China to unleash fresh fiscal stimulus sources
China on track to hit 2023 growth goal but headwinds persist
Some advisers call for raising budget deficit next year
Policymakers seen favouring stimulus over reforms
Debt could help nearterm growth, but deepen structural woes

BEIJING, Oct 24 Reuters China is set to unleash fresh fiscal stimulus to shore up its economic recovery, drawing on a wellused playbook that relies heavily on debt and state spending but falls short on the deeper reforms called for by a growing number of analysts.

Some government advisers are recommending China lifts its 2024 budget deficit target beyond the 3 of gross domestic product GDP set for this year, which would allow Beijing to issue more bonds to revive the economy, policy insiders and economists have told Reuters.

The world39;s secondlargest economy grew faster than expected in the third quarter, improving the chances Beijing can meet its growth target of around 5 for 2023.

But while the upbeat surprise gave battered China investors some cause for cheer, there are deeper concerns about the continued demise of private sector activity and the lack of longerterm reforms needed to shift the economy to consumerled growth.

For now, the focus remains on sustaining a fragile recovery to avoid economic disaster.

We need to make good preparations for next year and implement policies to stabilise growth. The foundation of economic recovery is not solid, said an adviser to the cabinet who…