### Summary
China's fiscal revenue rose 11.5% in the first seven months of 2023, but at a slower pace than the previous six months, indicating a loss of economic momentum.
### Facts
- 💰 China's fiscal revenue increased by 11.5% in the first seven months of 2023.
- 💸 Fiscal expenditure grew by 3.3% to 15.2 trillion yuan ($2.10 trillion).
- 📉 In July, fiscal revenue only rose 1.9% year on year, slower than the previous month's increase.
- 📉 Fiscal expenditure fell 0.8% in July, narrowing the decline compared to the previous month.
- 🌍 China's economy grew at a sluggish pace in the second quarter due to weak demand domestically and internationally.
- 📉 The consumer sector in China experienced deflation in July, with analysts predicting persisting price stagnation for the next six to 12 months.
China's fiscal revenue growth slowed in the first seven months of 2023, indicating a loss of economic momentum, with fiscal expenditure also increasing at a slower rate, according to official data.
China's fiscal revenue increased by 11.5% in the first seven months of 2023, but the growth rate was slower than the previous six months, indicating a potential decline in the economy's momentum.
Consumers have spent most of their excess savings from the Covid-19 pandemic, and this trend is expected to continue until the third quarter of 2023, potentially leading to a slowdown in economic growth and job market expansion.
China's budget deficit has shrunk by more than a third this year, indicating cautious fiscal policy despite economic slowdown and a worsening housing market.
China faces challenges in rebalancing its economy towards increased consumer spending due to the economic growth model that relies heavily on investment in property, infrastructure, and industry, as well as the reluctance of households to spend and the limited social safety net; implementing demand-side measures would require difficult decisions and potential short-term pain for businesses and the government sector.
China's economy is struggling due to an imbalance between investments and consumption, resulting in increased debt and limited household spending, and without a shift towards consumption and increased policy measures, the economic slowdown may have profound consequences for China and the world.
China's rebound from zero-covid restrictions has resulted in weak growth and deflation, with the lack of consumer spending becoming a major concern for policymakers.
China's failure to restructure its economy according to President Xi Jinping's bold reform plans has raised concerns about the country's future, with the possibility of a financial or economic crisis looming and a slow drift towards stagnation being the most likely outcome. The three potential paths for China include a swift, painful crisis; a gradual winding down of excesses at the expense of growth; or a switch to a consumer-led model with structural reforms that bring short-term pain but lead to a faster and stronger emergence.
China's economy is facing a "new new normal" due to a declining population and weak confidence in its post-Covid recovery, prompting calls for systemic reforms to revive growth. The country's aging and shrinking population poses challenges to productivity, consumption, and long-term growth potential, leading major investment banks to cut growth forecasts. Policy adviser Cai Fang suggests relaxing population controls and focusing on expanding consumption as strategies to boost economic growth.
China's economy has faced numerous challenges in 2023, including deflation and a property crisis, but another significant threat is the increasing number of wealthy individuals leaving the country, contributing to a brain drain.
China's economic challenges and failed rebound post-Covid are causing U.S. investors and businesses to view Chinese exposure as a liability, leading to underperformance in companies with high China exposure and potential bans on foreign devices, signaling a potential decline in China's economic growth.
China is seeking to increase productivity and efficiency in its industrial northeast region, facing economic challenges such as an aging population, declining birthrate, and a real estate crisis, but some economists argue that the government's focus on industrial investments is outdated and lacks measures to stimulate consumer confidence and spending.
China's efforts to reopen its economy and attract foreign investment after lifting its COVID-19 restrictions have been disappointing, with cross-border investment flows weakening, communication between the government and foreign investors strained, and business sentiment continuing to deteriorate.
China's economic malaise is attributed to a failure to implement necessary reforms, with structural threats to stability increasing and growth expectations diminishing, according to a report by Rhodium Group and the Atlantic Council, which warns that the country's goal of becoming the world's largest economy may be delayed.
China's economy is expected to reach its 2023 growth target, with a 5.1% GDP growth predicted for the fourth quarter, but further countercyclical policies are still needed to ensure long-term stability.
China is considering increasing its budget deficit by an additional 1 trillion yuan ($137 billion) for infrastructure projects, surpassing its 3% GDP target and aiming to boost the economy.
China's economy is expected to slow in the third quarter due to weakened demand, but increased government support may help Beijing achieve its full-year growth target.
China's economy is expected to have slowed in the third quarter due to weak demand, but increased stimulus measures could help the country reach its full-year growth target. GDP growth is predicted to be 4.4%, down from 6.3% in the previous quarter, and while recent data shows some stabilization, more measures may be needed to support economic activity.
