In the first five months of 2024, China saw a 2.8% drop in fiscal revenue compared to the previous year, marking an increase from the 2.7% decline reported in January-April. This downturn reflects the ongoing struggles with weak economic demand. Meanwhile, fiscal spending grew by 3.4%, slightly down from the 3.5% rise in the first four months, as per Finance Ministry reports.
42 sats \ 2 replies \ @NRS 1 Jul
From my perspective, the main reason is the control over waterways. After the closure of the Red Sea by the Houthis in Yemen, commercial ships started using the old trade route of Bab-el-Mandeb Strait (before the establishment of the Suez Canal). As a result, there are now obstacles to exports, including high shipping costs and the time needed for these ships to reach their destinations.
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0 sats \ 1 reply \ @TomK OP 1 Jul
yes, that may play a role. as you rightly mentioned, we are seeing how shipping rates are rising and could now exert inflationary pressure on the europeans again. control over the bottilmax of world trade is pure geopolitics, and the europeans are failing across the board. the Chinese, on the other hand, seem to be aware of this and
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42 sats \ 0 replies \ @NRS 1 Jul
Perhaps there are other solutions, but that would increase costs for Europeans.
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