Economists: Stealth stimulus 10% of GDP

China is stepping up stimulus by stealth in its efforts to ensure hitting the leadership’s growth target this year, with moves that will enhance the role of the state even as policy makers say they want a bigger role for the market, Bloomberg reports. The fiscal deficit when taking off-budget spending into account will exceed 10% of gross domestic product this year – more than triple the government’s stated ratio of 3%, according to economists at UBS Group AG and JPMorgan Chase & Co. The money comes through China’s three policy banks, which invest in state-backed projects, and through local governments via various channels.