China’s weak trade data adds gloom to troubled economy

Deep dive in Exports and declining demand for Chinese goods cripple outlook for world’s second largest economy

Photo by: Reuters
Photo by: Reuters

Overseas shipments, a key driver of China’s economic growth, came in far weaker than expected for July, while Imports signaled a weak domestic demand, giving a crippling outlook for the world’s second largest economy  The lethargic trade data calls for further easing of policies even though China recently rolled out fresh stimulus measures to prop up the economy.

China’s exports fell far below expectations in July, down 8.3 percent from a year earlier while imports also followed a downward trend, sliding, 8.1 percent year-on-year, data from the General Administration of Customs showed on Saturday. 

Exports to Japan declined the most dropping 13 percent, followed by the European Union, down 12 percent, exports to the US dropped 1.3 percent. 

The July trade recorded a surplus of $43.03 billion, failing to reach the expected forecast of $53.25 billion.

According to analysts China’s strong currency, the yuan, has weighed down the demand for Chinese goods, as it become more expensive for foreign investors. However, the government has held off devaluing the currency as it seeks to add the yuan into the International Monetary Fund’s Special Drawing Rights.


TRTWorld and agencies