COVID-19 Continues to Impact China’s Fiscal Revenue in April

During the first four months of 2020, China’s fiscal revenue posted negative changes, reflecting the impact of the COVID-19 outbreak on public finances. From January to April, China’s general public fiscal revenue decreased by 14.5% y/y, compared to a 9.9% y/y drop during the period from January to February 2020.

The data breakdown shows that the April year-to-date drop was caused mainly by a 16.7% y/y plunge in tax revenue. Tax revenue from exports and imports plummeted by 20% y/y and 22% y/y, respectively. The value-added tax (VAT) revenue, a frequently used indicator for China’s business activity, dropped further by 24% y/y, compared to a 19% y/y decline in year-to-date in February. The consumption tax declined further by 13% y/y, compared to a 10% y/y drop in year-to-date in February.

From January to April 2020, China’s government-managed fund revenue dropped by 9.2% y/y, which was less than the 18.6% y/y plunge year-to-date in February.

Detailed data and analysis on COVID-19 and its economic impact can be found in CEIC’s Coronavirus Data Monitor. Sign in for further indicators covering in the CEIC China Economy in a Snapshot - Q2 2020.