China Narrows Fiscal Deficit for First Time Since 2023

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โดย Bloomberg·Read original
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China narrowed its cumulative fiscal deficit for the first time in more than two years, pressing ahead with austerity despite muted domestic demand and slowing economic growth. The combined shortfall under China's two biggest government budgets shrank 4.1% in the first five months from the same period a year earlier to 3.16 trillion yuan, according to Bloomberg calculations based on data released by the Ministry of Finance. Government expenditure fell 3.9% on year in May, the third consecutive month of decline, while total spending under the two accounts fell 0.3% in January through May even as broad income climbed 0.8%. Goldman Sachs economists noted that fiscal policy has become less supportive of growth in the second quarter versus the first, but they do not expect significant broad-based stimulus in the near term given strong exports and this year's modest growth target. The property downturn remained a drag on government revenue, with income from land sales tumbling nearly 36% last month, marking its eighth straight month of double-digit decline.

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