China’s Jan-June fiscal revenue growth slows

BEIJING  – China’s fiscal revenues grew 13.3 percent in the first six months of 2023 from a year earlier, slower than a 14.9 percent rise in the first five months, finance ministry data showed on Wednesday.

Fiscal spending rose 3.9 percent in the January-June period, slowing from a rise of 5.8 percent in the first five months, the ministry’s data showed.

Fiscal revenue totaled 11.9 trillion yuan ($1.65 trillion) in the first six months while spending totaled 13.4 trillion yuan, the ministry’s data showed.

In June alone, fiscal revenue rose 5.6 percent from a year earlier, slowing sharply from a 32.7-percent jump in May, according to Reuters calculations based on the ministry’s data.

The world’s second-biggest economy grew at a frail pace in the second quarter as demand weakened at home and abroad. Official data this week showed gross domestic product expanded 6.3 percent in the second quarter from a year earlier, below the forecast 7.3 percent growth.

READ: China’s Q2 GDP growth slows to 0.8% q/q, raises stimulus expectations

China will guide local governments to speed up issuance of special bonds, Li Dawei, an official at the ministry, said at a press conference in Beijing on Wednesday, adding local governments have issued 2.17 trillion yuan of special bonds in the January-June period.

($1 = 7.2021 yuan)

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