China’s fiscal revenue slows as economy struggles

CHINA’S fiscal revenue rose 11.5 per cent in the first seven months of 2023 from the same period a year earlier, but was slower than the 13.3 per cent rise posted for the first six months, official data showed, amid signs the economy is losing momentum.

Fiscal revenue totalled 13.9 trillion yuan (S$2.6 trillion) from January-July, while fiscal expenditure grew 3.3 per cent to 15.2 trillion yuan (S$2.8 trillion), the finance ministry said in a statement on Monday (Aug 21).

In July, fiscal revenue rose 1.9 per cent year on year, slowing from a 5.6 per cent increase in June. Fiscal expenditure fell 0.8 per cent in the same period, narrowing from a 2.5 per cent decline a month earlier, according to Reuters calculations based on the ministry’s data.

The world’s second-largest economy grew at a sluggish pace in the second quarter amid weak demand both at home and abroad, prompting top leaders to promise further policy support and analysts to downgrade their growth forecasts for the year.

China’s consumer sector fell into deflation in July, with analysts expecting price stagnation to persist for the next six to 12 months. REUTERS