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The new fiscal year began on April 6, marking the post-election intensification of the fiscal squeeze for many households. The Office for Budget Responsibility estimates net tax and benefit changes will subtract 1.2 percentage points from year-over-year growth in households' disposable incomes in 2016.
China's finance minister Liu Kun provided his report on China's current fiscal situation to the legislature last Friday.
China's September activity data, released at the end of last week, back up our claim that GDP growth weakened in Q3, on a quarter-on-quarter basis.
Q2's GDP figures create a terrible first impression, but a closer look suggests that the risk of a recession remains very low.
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