China trade slumps more than expected in July

by | Aug 8, 2023

(Sharecast News) – China’s imports and exports slumped further than expected last month, official data showed on Tuesday, reflecting a stagnating recovery in the world’s second-largest economy and increasing pressure on Beijing to provide more stimulus.
Imports in July fell 12.4% year-on-year, much worse than the 5.6% forecast by economists. Exports also fell faster than expected, contracting by 14.5%, after June’s 12.4% fall.

The trade surplus rose to $80.6bn in July from $70.6bn against a consensus of $70.0bn.

“China’s exports are likely to continue falling in H2, as the U.S. is likely to enter a mild recession, while the Eurozone economy probably will remain weak,” said Duncan Wrigley, chief China+ economist at Pantheon Macroeconomics.

“Exports are now falling in all of China’s significant markets, except Russia, meaning that China will need to rely more on domestic demand to stabilise growth in H2. But China is opting for only a limited stimulus, largely focused on supply-side measures, though also including tax cuts for SMEs and an incremental loosening of city-level property policies, such as mortgage terms.”

“Policymakers appear determined to allow household spending and business investment to take the lead in this recovery cycle, even if that means a drawn-out, tortuous upturn.”

Reporting by Frank Prenesti for Sharecast.com

Related articles

Recruitment slumps on weaker economic backdrop

Recruitment slumps on weaker economic backdrop

(Sharecast News) - Recruitment fell sharply in November, an industry survey showed on Friday, as economic uncertainty saw employers cut back on hiring. According to the latest UK Jobs Report from KMPG and the Recruitment and Employment Confederation, placements of...

FCA sets out new rules to prevent fully cashless society

FCA sets out new rules to prevent fully cashless society

(Sharecast News) - The Financial Conduct Authority (FCA) has declared that certain banks and building societies will still need to hold cash despite the UK's continuing shift to digital payments. The new rules will ensure that the three million consumers who rely on...

UK house prices rise amid property shortage – Halifax

UK house prices rise amid property shortage – Halifax

(Sharecast News) - UK house prices rose for the second month in a row in November, boosted by a shortage of properties, according to figures released by Halifax on Thursday. House prices rose 0.5% on the month following a 1.2% jump in October and after six consecutive...

Latest Articles

Join our mailing list

Subscribe to our mailing list to receive regular updates!

x