Shenzhen May Report First Drop in Fiscal Revenue Since 1990
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Shenzhen, China’s third-largest city in terms of GDP, is likely to have seen a drop in its fiscal revenue last year for the first time since 1990, underscoring the struggles facing local governments across China to increase their financial resources amid sluggish economic growth.
The city government has yet to issue its annual work report, which will provide details of its economic performance in 2024, including fiscal revenue. But a report released in January by Yantian district, which includes the vast Yantian port, revealed that the average growth in the city’s general public budget (GPB) revenue was a negative 4.8%. The report, which has since been taken down from the district’s website, prompted speculation that the city as a whole saw a decline in revenue.
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- Shenzhen likely experienced a fiscal revenue drop for the first time since 1990, potentially decreasing to 391.5 billion yuan ($55 billion) from 411.3 billion yuan due to a 4.8% decline.
- The city's tax revenue, which was 84.3% of the total GPB revenue in 2023, suffered due to low corporate profits, a weak property market, and tax reduction policies.
- Nationally, nontax revenue rose 25.4% in 2024, supported by profits from central organizations and increased fines, unlike Shenzhen, where nontax revenue fell significantly.
- Yantian Port
- Yantian Port is part of Shenzhen's Yantian district and plays a significant role in the area's economy. According to a January report from Yantian district, the city's general public budget revenue experienced a negative growth of 4.8%, sparking speculation about a citywide revenue decline. This report has since been removed from the district's website.
- 1990：
- Shenzhen's GPB revenue declined by 5%, the only decline since its special economic zone establishment in 1980
- 2023：
- Shenzhen's GPB revenue reached 411.3 billion yuan, with tax revenue at 347 billion yuan (84.3%)
- 2024：
- Shenzhen's GPB revenue fell 4.8% to 391.5 billion yuan; nationally GPB revenue increased 1.3% to 22 trillion yuan while tax revenue decreased 3.4% to 17.5 trillion yuan. Guangdong province reported 4.2% tax revenue decline
- January 2025：
- Yantian district reported -4.8% average growth in city's GPB revenue before removing the report; Guangdong province confirmed decreased tax and fiscal revenue for 2024
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