BEIJING: China’s exports and imports grew more slowly than expected in July, raising concerns over whether global demand is starting to cool even as major Western central banks consider scaling back their massive stimulus programmes.
China and Europe have been driving an increasing share of global growth this year as political conflict stymies stimulus policies being pushed by US President Donald Trump. But China’s export growth slowed to 7.2 per cent in July from a year earlier, the weakest pace since February and cooling from an 11.3 per cent rise in June, official data showed on Tuesday. Analysts had expected a 10.9 per cent gain.
Imports rose 11.0 per cent, the slowest growth since December and down from a 17.2 per cent rise in the previous month. That also missed expectations of 16.6 per cent growth.
That left the country with a trade surplus of $46.74 billion for the month, the highest since January, compared with forecasts for $46.08 billion and above June’s $42.77 billion. The July trade figures are preliminary, with revised data due on July 23.
Asian stock markets went flat after the disappointing China data, which came a day after ratings agency Fitch upgraded its outlook for the world economy for this year and next, citing recoveries in China and other emerging markets.
“Despite an uptick at the end of the second quarter, (China’s) trade growth now appears to be on a downward trend. In particular, the sharp decline in import growth since the start of the year suggests that domestic demand is softening,” Capital Economics said in a note. — Reuters
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