China’s fiscal revenue slipped 2.7 percent in the first four months of 2024 from a year earlier, after a 2.3 percent slide in the January-March period, in a further sign of an uneven economic recovery. Fiscal expenditure rose 3.5 percent in the first four months, versus a 2.9 percent gain in the first quarter, according to data from the country’s finance ministry.
For April alone, fiscal revenue fell 3.7 percent against a 2.4 percent decline in March, while fiscal spending was up 6.1 percent, compared with March’s 2.9 percent fall, according to Reuters’ calculations based on the ministry data.
Excluding factors such as last year’s high base and tax cut policies, fiscal revenue in the first four months grew 2 percent, the ministry said in a statement.
Economic growth target
China has set an ambitious economic growth target of around 5 percent for this year, which many analysts say will be a challenge to meet as prolonged weakness in the property sector and tepid consumer demand remain a drag on the economy.
Factory output, retail sales
Factory output topped forecasts in April, helped by improving external demand, but retail sales unexpectedly slowed and the property sector remained a key drag on the economy, piling pressure on Beijing to do more to support growth.
Total social financing expansion
The expansion of outstanding total social financing (TSF), a broad measure of credit and liquidity, hit a record low of 8.3 percent in April, amid lagging government bond issuance.
Property easing measures
Last week, China launched “historic” property easing measures and the finance ministry kicked off the issuance of 1 trillion yuan ($139.58 billion) in long-dated special treasury bonds to stimulate key sectors of the economy.
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