China’s fiscal revenue growth slows slightly amid sluggish economic recovery

CHINA'S fiscal revenue growth slowed slightly in the January-July period compared to the first 6 months of the year, finance ministry data showed on Wednesday (Aug 17), as the economy was squeezed by the country's zero-Covid policy and a property crisis.

Fiscal revenue in the first 7 months grew 3.2 per cent from a year earlier, excluding the impact of value-added tax credit rebates, slower slightly than a 3.3 per cent rise in the first 6 months.

In July alone, fiscal revenue shrank 4.1 per cent from a year earlier, the smallest contraction in 4 months, according to Reuters calculations based on the official data.

Massive tax credit rebates are basically completed, totalling more than 2 trillion yuan (S$407.7 billion) since the beginning of the year, China Securities Journal reported on Wednesday, citing the finance ministry.

China's government land sales for July fell 33.2 per cent year on year, narrowing from a 40 per cent drop in June, according to Reuters calculations based on data from the ministry.

Fiscal spending reached 14.68 trillion yuan in the first 7 months, up 6.4 per cent from a year earlier, the finance ministry's data showed.

July's grim reading of factory and retail sales indicate the world's second largest economy is struggling to shake off the second quarter's hit to growth from strict Covid restrictions.

China will step up support for the economy, urging economically important provinces to take the lead in implementing growth policies, state media reported on Tuesday, citing Premier Li Keqiang.

Policy insiders and analysts expect China's central bank to take more easing steps, but said it faces limited room to manoeuvre due to worries over rising inflation and capital flight. REUTERS

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