China’s exports rose much less than expected last month, curbing a trade rebound that has been a bright spot for the slowing economy.
Exports climbed just 2.4 percent in US dollar terms from a year earlier, while imports inched up 0.3 percent, the Chinese General Administration of Customs said yesterday. That left a trade surplus of US$81.71 billion for the month.
Economists had forecast that exports would rise 6 percent, while imports would expand 0.8 percent.
Photo: Qilai Shen, Bloomberg
Chinese exports have been a rare source of strong growth for the economy this year, with the total value of shipments through last month the second-highest on record. However, imports have not grown as fast due to the slowdown in domestic growth, causing a record trade surplus and prompting more countries to raise barriers to Chinese goods.
Beijing has sought to bolster growth with a slew of stimulus measures, which could lift demand for imports and put pressure on prices to rise. The domestic economy has been in deflation since the second quarter of last year, which has pushed down export prices.
China has relied on manufacturing and exports to propel growth as the property sector slump hit consumer sentiment, with officials last week announcing plans for a significant fiscal stimulus package.
The country would issue special bonds to bolster banks, signaling an impending spending spree to shore up the property market and ease local government debt, Chinese Minister of Finance Lan Foan (藍佛安) said on Saturday.
China’s top banks on Saturday also said they would lower interest rates on existing mortgages from Friday next week.
“After accounting for changes in export prices and for seasonality, we estimate that export volumes softened a touch,” Capital Economics economist Zichun Huang (黃子春) said in a note yesterday.
“We think shipments will stay strong in the near term, supported by gains in export competitiveness. Further ahead, though, growing trade barriers are likely to become an increasing constraint,” Huang wrote.
Additional reporting by AFP
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