By BEIJING (Reuters) – China’s fiscal revenue in the first eight months of 2024 was down 2.6% from a year earlier, unchanged from July’s seven-month reading, finance ministry data showed on Friday, as pressure mounts on policymakers for more stimulus to lift up the economic outlook.
Fiscal expenditure grew 1.5% in the January-August period, down from a 2.5% increase in the first seven months.
In August alone, fiscal revenue went down 2.8% year-on-year, worsening from the 1.9% decline seen in July. Fiscal spending decreased by 6.7%, a sharp reversal from a 6.6% jump in July, according to Reuters’ calculations based on the ministry’s data.
August economic data showed momentum in China’s export-led economic recovery remains frail. Domestic demand struggled to gain traction amid persistent deflationary threat.
China’s roughly 5% growth target for 2024 allows for some flexibility. However, faltering growth in recent months has prompted several global brokerages to lower their forecasts below that target.
Policy advisers and economists expect more policy support to at least help the economy meet the growth target, but they said a “bazooka” stimulus is unlikely.
Premier Li Qiang has pledged further measures to boost demand, and the central bank has signalled the room for further cutting bank reserve requirement to stimulate growth.