OR China expanded the state expenditure In the first quarter of 2025, reinforcing its economy, which is preparing to reduce demand from overseas, as trade war with the US is intensifying.
Expenditure on the General Public Budget and the State Fund’s account, China’s two main fiscal books, increased to 9.26 trillion. Wan ($ 1.3 trillion) in the first three months of 2025, increasing 5.6% compared to the same period one year earlier, according to Bloomberg calculations based on data published by the Treasury today (18.4.2025). This was the strongest increase for the first quarter of the last three years.
This means that almost 22% of the costs scheduled for the whole year was spent during this period, faster than 21.6% at the same time last year.
China must boost public spending to shield the economy, as US duties could lead to exports to shrinking, while the multiannual recession of the real estate market and deflation maintain the climate of consumers and businesses.
Its growth was maintained in January-March, but economists are generally awaiting that it will slow down in the second trimester, after the wave of exports are reinforced and the benefits of a consumer exchange program decrease.
Faster payment of tax refunds has been reported by some analysts as an option to offset some pressure caused by US duties to exporters. Payment as a percentage of exports last month stood at 11%, slightly slightly increased compared to the level one year earlier, according to Bloomberg -based Bloomberg calculations.