English | دری

China’s Double Whammy of Slowing Exports and Imports Growth

in International Business

China’s exports rose by only 1% from a year earlier, down from 11.3% growth in June; meanwhile, imports rose by 4.7% compared with 6.3% in June.

The sluggish exports growth indicates the slowing demand from the key global markets, highlighting the risk that the global economic slowdown poses to China.

The country’s slow-moving imports reflect the dwindling domestic demands.

 China’s disappointing trade balance comes after China reported that growth in industrial output fell to a three-year low in July.

Simultaneously, the growth in retail sales during the month also fell short of forecasts.

The weak data signals a further slowdown of the economy than previously thought.

Government has already stepped in with some easing mechanisms including lowering the key interest rates and reducing the amount of money the country’s banks must keep in reserve, in a bid to lower borrowing costs for customers and businesses.

Analysts call for further policymaking to trigger growth.

“With the export sector losing speed faster than expected, the government’s current investment stimulus plan looks woefully inadequate,” said IHS Global Insight’s Mr Thornton.



Related Articles

US consumer confidence at its highest in 5 years

The latest improvement in the US job market has resulted in a jump in the US consumer confidence, rising to

India-Pakistan border post opens for business

Historic checkpoint reopens to commercial traffic in bid to boost trade between antagonistic neighbours. For the first time since 2007,

Microsoft completes acquisition of Nokia mobile phones

Microsoft closed on its approximately USD 7.5bn acquisition of Nokia’s hardware operations on Friday. The deal will mark the end

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.