China's Fiscal Spending Slumps 19% in October, Weakening Economic Growth Driver

Overview

China's combined fiscal expenditure dropped by 19% in October from a year ago, marking the steepest decline since early 2021. This significant slump in government spending, a key driver for investment and economic growth, suggests waning fiscal support for the world's second-largest economy. Economists noted that the reduced spending might have weighed on fixed-asset investment and that new stimulus measures will take time to impact the economy.