Investing.com-- China's fiscal revenue from January to April 2023 increased by 11.9% compared to the same period last year, reaching CNY 8.32 trillion ($1= CNY 7), according to official data.
This marks a sharp acceleration from the 0.5% rise recorded in the first quarter of the year, as the country's economy continues to recover unevenly from the COVID-19 pandemic.
Advertisement: High Yield Savings Offers
Fiscal expenditure during the four-month period rose by 6.8%, reaching CNY 8.64 trillion, the Ministry of Finance announced in a statement on Thursday. In April alone, fiscal revenue jumped approximately 70% year-on-year, up significantly from a 5.5% increase in March, according to Reuters calculations.
The world's second-largest economy is rebounding following three years of strict coronavirus restrictions. However, early indicatiors for April suggest that economic momentum may have slowed at the beginning of the second quarter.
Analysts predict that China's economy will grow almost 8% in Q2 compared to a year earlier, a faster pace than the first quarter's 4.5%. This growth can be partially attributed to a low base last year due to widespread lockdowns in response to COVID-19.
As China gradually recovers from the pandemic, it will likely continue to face challenges such as global supply chain disruptions and fluctuating commodity prices, which could impact economic stability and growth. Additionally, policy uncertainties regarding property market regulations and ongoing efforts to reduce carbon emissions may also influence the speed and trajectory of China's post-COVID recovery.
The Chinese government has pledged to maintain a proactive fiscal policy and prudent monetary policy in order to support economic growth while also addressing potential risks and challenges. As part of this approach, authorities have announced a series of targeted tax cuts and fee reductions aimed at easing the burden on businesses and stimulating economic activity.
Ultimately, China's robust fiscal revenue growth in the first four months of 2023 serves as an encouraging sign that the nation's economy is gradually finding its footing after a prolonged period of uncertainty due to the pandemic.
Related Articles
China's fiscal revenue rises 11.9% in first four months of 2023