China’s imports, exports fall again in July
BEIJING : China’s exports fell again in July by an unexpectedly wide margin in a rocky start to the third quarter while a decline in imports accelerated in a possible sign of weakness in the world’s second-largest economy.
Exports contracted 4.4 per cent to $184.7 billion, a slight improvement over June’s 4.8 per cent contraction, customs data showed on Monday. Imports fell 12.5 per cent to $132.4 billion, accelerating from a decline of 8.4 per cent.
Chinese economic growth held steady at 6.7 per cent in the quarter ending in June compared with a year earlier, though that was the lowest quarterly level since the aftermath of the 2008 global crisis.
“I think (the drop in imports) is mainly from the demand side,” said Ma Xiaoping, an economist at HSBC in Beijing. Government efforts to cut overcapacity could produce an even bigger hit to demand in the next few quarters, Ma added.
China’s imports have now declined for 21 straight months, while exports have fallen for 12 of 13 months, helping to drag economic growth to its slowest in a quarter of a century.
Source : Reuters