Data published by the Ministry of Finance of China showed that from the beginning of 2023 (to April), budget revenues increased by 11.9% per annum, to 8.32 trillion yuan, after an increase of 0.5% per annum in the first three months of 2023. Meanwhile, from January to April, budget expenditures increased by 6.8% per annum, to 8.64 trillion yuan.
The stronger revenue growth was driven by the recovery of economies after three years of severe restrictions due to COVID-19, but April data suggest that the economy lost momentum at the beginning of the second quarter.
The Ministry of Finance said that in April budget revenues increased by about 70% per annum after a rise by 5.5% per annum in March.
The data also showed that China's government land sales revenue fell 21.7% in the first four months of the year from a year earlier.
Earlier this month, the International Monetary Fund raised its forecast for Asia-Pacific, saying the region's growth will be primarily driven by China's recovery and “resilient” growth in India. The organization predicts Asia-Pacific’s GDP to expand 4.6% this year, which is 0.3% higher than its forecast in October. The IMF’s upgraded outlook would mean the region would contribute around 70% of global growth. The region expanded 3.8% in 2022.