China's fiscal revenue decline narrows in January-July
Adds finance ministry comment in paragraphs 4-5
BEIJING, Aug 26 (Reuters) -China's fiscal revenue fell 2.6% in the first seven months of 2024 from a year earlier, narrowing slightly from a 2.8% slide in the first half, finance ministry data showed on Monday, as the economy struggles for a pick-up in growth.
Fiscal expenditure grew 2.5% in the January-July period, versus a 2% increase in the first half.
For July alone, fiscal revenue fell 1.9% on year, narrowing from a 2.6% decline in June, while fiscal spending jumped 6.6%, compared with a 3% fall in June, according to Reuters' calculations based on the ministry's data.
Fiscal revenue has been running at low levels, partly due to a high base last year, state media reported, citing the finance ministry.
The ministry said in a statement that macro-policy implementation in the coming months and the fading year-earlier effects will "underpin fiscal revenue growth." It also expected fiscal spending to steadily rise.
July economic data, including a fall in household loans and a slowdown in industrial output growth, points to underlying demand weakness and the need for bolder stimulus measures, analysts have said.
China's leaders signalled at a key policy meeting at the end of July that fiscal support for the rest of the year will "focus on consumption", days after they unveiled plans to support trade-ins for consumer goods.
Reporting by Qiaoyi Li and Ryan Woo; Editing by Neil Fullick and Jacqueline Wong
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
