CHINA’S economic growth was boosted by about 0.8 percentage points last year, following tax cuts of more than 2 trillion yuan (US$288 billion), the government said.

The tax cut was worth more than 2 percent of gross domestic product, according to a latest statement from the tax authority. That means that the nominal value of the economy likely grew to about 100 trillion yuan at the end of 2019, according to Bloomberg calculations, up from 92 trillion yuanin 2018.

The data confirms President President Xi Jinping’s statement on New Year’s Eve that GDP was “expected to be close to 100 trillion yuan” in 2019. The tax agency didn’t provide a detailed breakdown of revenues or how it calculated the GDP contribution.

Tax revenue rose 1.8 percent in the year to about 14 trillion yuan in 2019, the State Taxation Administration said, lower than the 9.5 percent increase in 2018.

Revenue growth fell due to the cuts, including a reduction in value-added tax rates and an increase in the amount households could deduct from their income.

The Ministry of Finance is expected to publish a full-year income report later this month that also includes non-tax revenues such as profits by State companies which are turned over to the national treasury.

(SD-Agencies)