China’s economic recovery boosts fiscal revenue growth rates

China’s fiscal revenue has experienced a significant increase year-on-year. The first four months of 2023 saw an 11.9% rise in revenue, in contrast to the 0.5% growth observed in the first quarter of 2023. The country’s fiscal revenue for this period amounted to 8.32 trillion yuan ($1.2 trillion), while fiscal spending rose by 6.8% to 8.64 trillion yuan. Fiscal revenues also experienced a surge in April, with a 70% year-on-year increase, a marked acceleration from March’s 5.5% rise, as reported by Reuters based on the ministry’s data.

China’s economy, which is the world’s second-largest, is gradually recovering from the severe impact caused by the COVID-19 pandemic. While it is still early to draw definite conclusions, April data points to a potential year-on-year growth in the second quarter, with analysts estimating an almost 8% expansion compared to the first quarter’s 4.5% pace. This growth is partly due to the lower base effect caused by the significant economic slowdown during the pandemic-induced lockdowns last year.

The current exchange rate for Chinese yuan to USD is $1 = 6.9121 Chinese Yuan. Ellen Zhang and Ryan Woo provided the report, with editing by Himani Sarkar. Thomson Reuters Trust Principles dictate the standards followed in its reporting.

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