Data released by the Chinese Ministry of Finance showed that from January to October, China's budget revenues fell by 1.3% year-on-year after a 2.2% decline in the first 9 months of 2024. Meanwhile, budget expenditures increased by 2.7% per annum, accelerating compared to January-September, when an increase of 2% per annum was recorded.
Overall, the October data reflected a mixed picture of China's economic recovery, despite various stimulus measures announced since the end of September. Analysts say the barrage of measures will only have a modest positive effect on economic activity in the near term.
Last month, the International Monetary Fund (IMF) lowered its forecast for China's GDP growth for the current year, indicating that consumer confidence and domestic property issues are set to weigh on the economy for the remainder of the year. The IMF now expects GDP to grow by 4.8%, which is 0.2% lower than the previous forecast presented in July. The projection, although in line with Beijing’s official “around 5%” target, accentuates the festering sore spots in the world’s second-largest economy.