China’s fiscal revenues grew 11.5% in the first seven months of 2023 from a year earlier, finance ministry data showed on Monday.
That figure indicates that growth is slowing, as it was down nearly 2% from a 13.3% rise in the first six months.
Fiscal spending rose 3.3% in the January-July period, down from a rise of 3.9% in the first six months, the ministry added.
The news comes after five major brokerages cut their economic growth forecasts for China this year as worries about contagion from debt repayment troubles at its top private property developer Country Garden deepened.
China’s economic growth outlook has soured with retail sales, industrial output and investment all growing at a slower-than-expected pace.
Weak consumer demand has tipped the world’s second largest economy into deflation amid rising pressure on Beijing to deliver more stimulus to support the economy.
Global banks chop China growth forecasts
Global banks have cut their forecasts in light of growing fear that massive debts accrued by provincial governments‘ funding bodies is limiting financial policymakers’ capacity to maintain the economic recovery seen in the first quarter after tough Covid restrictions were finally lifted late last year.
Last week Morgan Stanley slashed its 2023 forecast from 5% to 4.7%, while JPMorgan trimmed its 5% forecast to 4.8% and Barclays chopped its estimate from 4.9% to 4.5%.
Deutsche Bank also trimmed its China outlook from 5.3% to 5%, while Nomura cut its forecast from 5.1% to 4.6%.
- Reuters with additional editing by Jim Pollard