Finance Ministry reports 2.8% revenue drop in first five months of 2024, growth target 5%.

According to official data,Official Futures Platform Download China's fiscal revenue for the first five months of 2024 decreased by 2.8% year-on-year. This decline is a further drop compared to the 2.7% decrease seen from January to April, indicating that weak demand is hampering economic recovery.

Data from the Ministry of Finance shows that fiscal spending in the first five months grew by 3.4%, slightly lower than the 3.5% growth in the first four months.

In May alone, fiscal revenue fell by 3.2% year-on-year, compared to a 3.7% decline in April; fiscal spending grew by 2.6%, down from 6.1% in April. These figures were calculated by Reuters based on the Ministry of Finance's statistics.

China has pledged to increase fiscal stimulus to support its fragile economy. The roughly 5% growth target set for this year has pressured policymakers to boost domestic economic activity amid escalating tensions with Western trade partners.

Beijing has already started issuing 1 trillion yuan (approximately 137.82 billion USD) in long-term special bonds and has introduced government-subsidized incentives to promote the replacement of cars and other consumer goods.

However, the deterioration in real estate investment, sales, and some key monetary indicators to historic lows has raised concerns about the continued weakness in domestic demand.

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