FX.co ★ China's Fiscal Revenue Drops 1.6% in Jan-Feb

In the first two months of 2025, China's fiscal revenue saw a 1.6% decrease compared to the previous year, a notable shift from the 1.3% growth recorded in 2024. At the same time, government expenditure increased by 3.4%, slightly decelerating from the 3.6% rise observed last year. In response to waning consumption and the adverse effects of escalating U.S. tariffs, China has set its fiscal deficit target at an unprecedented CNY 5.66 trillion this year, representing 4.0% of GDP, up from 3.0% in 2023. The authorities have pledged to implement a more proactive fiscal policy to uphold their GDP growth target of 5% for 2025.