Dienstag, 24. März 2009

China's economy

Two tidbits that caught my attention:

China's steel-makers are apparently cutting back their production quite sharply once again, as recent production increases have led to a massive surge in inventories.

China's "fiscal revenue" is down 11 % yoy for Jan/Feb. Local government revenue was stable, but the central government's revenue dropped by 20 %. Total tax revenue was down 13 %, of which "business tax" revenue was down 5 %. "Business profits" from SoEs were also down (the extent of their drop was unspecified, but considering that taxes and total revenues dropped by a similar amount, business profits were also in the same ballpark). That's quite a drop for a country used to nominal growth of 10-15 %. Though as usual, one shouldn't read too much into a mere two-month-period.


  1. Could you bring same link?
    The drop in the revenue is interesiting.It mean that the export drop feed itself throught the domestic economy.And it is fast.

  2. I picked it up here:


    And then noticed that the data was first announced more than a week ago in this Xinhua article:


    Feb was better than Jan, but that was most likely due to the Chinese New Year effect.