China’s fiscal revenue falls 2.7% in early 2024

China’s fiscal revenue fell 2.7% in the first four months of 2024, following a 2.3% drop in the January-March period, signaling an uneven economic recovery. Fiscal expenditure rose 3.5% during the same period, up from a 2.9% gain in the first quarter, according to the finance ministry. In April, fiscal revenue decreased 3.7%, while spending increased 6.1%. Excluding factors like last year’s high base and tax cuts, fiscal revenue grew 2%. Despite setting an ambitious 5% growth target, challenges remain due to property sector weakness and tepid consumer demand. Factory output improved in April, but retail sales slowed, increasing pressure on Beijing to support growth.