China’s fiscal revenue growth is accelerating as the economy recovers

China's fiscal revenue growth is accelerating as the economy recovers


BEIJING (Reuters) – China’s tax revenue rose 11.9% in the first four months of 2023 from the same period a year earlier, accelerating sharply after a 0.5% increase in January-March, a new study showed. official data, while the economy is experiencing gradual but uneven growth. recovery after COVID.

Fiscal revenues totaled 8.32 trillion yuan ($1.20 trillion) in the first four months, while fiscal spending rose 6.8% to 8.64 trillion yuan, the ministry said in a statement Thursday.

In April, tax revenues rose about 70% from a year earlier, a sharp acceleration after a 5.5% increase in March, according to Reuters calculations based on the ministry’s data.

The world’s second-largest economy is recovering after three years of tight COVID-19 restrictions, but April data suggested the economy lost momentum at the start of the second quarter.

Analysts expect the Chinese economy to grow nearly 8% year-on-year in the second quarter, faster than the 4.5% growth rate in the first quarter, in part because it came from a low last year when widespread COVID lockdowns were.

($1 = 6.9121 Chinese Yuan Renminbi)

(Reporting by Ellen Zhang and Kevin Yao; editing by Himani Sarkar and Sonali Paul)