6/18/2023 0 Comments Economic stimulus mailingsChina Daily via REUTERS/File Photo IMPORT STRESS Hong Kong's Hang Seng Index was down 1.11% in the early afternoon while China's blue chip CSI300 Index was 0.26% weaker, after climbing 0.5% before the lunch break.Īn aerial view shows containers and cargo vessels at the Qingdao port in Shandong province, China May 9, 2022. The data appeared to push Hong Kong and mainland Chinese stocks lower, although global factors were also at play. "Given the gloomy outlook for external demand, we think exports will decline further before bottoming out later this year," said Zichun Huang, China economist at Capital Economics in a note. The sharp deterioration in last month's trade flows will only renew worries about the state of external demand and risks posed to the domestic economy, especially given the frail recovery from a year earlier when inbound and outbound shipments were severely disrupted by China's COVID-19 restrictions. Government officials have repeatedly warned of a "severe" and "complicated" external environment in the wake of mounting recession risks for many of China's key trading partners. "While China's post-COVID rebound has been swift and sharp, it has been largely self-contained and not felt by the rest of the world," he added. "At the beginning of this year, one would assume that imports will easily surpass 2022 levels following the reopening, but that hasn't been the case," said Xu Tianchen, an economist at the Economist Intelligence Unit. Inbound shipments to the world's second-largest economy fell 7.9% year on year in April, extending the 1.4% decline seen a month earlier, while exports grew 8.5%, easing from the 14.8% surge in March, customs data showed on Tuesday.Įconomists in a Reuters poll had predicted no growth in imports and an 8.0% increase in exports. Charles Schumer, D-N.Y., has also criticized the mailings, saying there were "countless better uses" for the money.BEIJING, May 9 (Reuters) - China's imports contracted sharply in April, while exports rose at a slower pace, reinforcing signs of feeble domestic demand despite the lifting of COVID curbs and heaping pressure on an economy already struggling in the face of cooling global growth.Ĭhina's economy grew faster than expected in the first quarter thanks to robust services consumption, but factory output has lagged and the latest trade numbers point to a long road to regaining the pre-pandemic momentum at home. "These special letters remind people that they won't need to do anything more than file a 2007 tax return in order to put the stimulus payment process in motion," Acting IRS Commissioner Linda Stiff said in a recent news release.Ĭongress and President Bush approved a stimulus package that will mean one-time payments of $600 for individuals and $1,200 for married couples, along with $300 payments for each child younger than 17. ![]() ![]() ![]() The IRS is mailing letters to 130 million Americans who filed a 2006 tax return, notifying them that they must file a tax return this year to receive a stimulus check. The IRS should instead ask Congress for permission to use this funding to crack down on fraud and close the tax gap." ![]() "Congress should be ashamed of itself for approving a 'stimulus' bill that included funding for this wasteful mailing. "Perhaps the IRS should also inform taxpayers of their share of the $9 trillion national debt, which as of today is more than $30,000 per American," Coburn said. Tom Coburn criticized the Internal Revenue Service on Tuesday for spending $42 million to notify taxpayers that they'll receive an economic stimulus check if they file a tax return this year.Ĭoburn, R-Muskogee, said the letters were unnecessary.
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