China export and import growth slows sharply in July
Published: 10th Aug 2012 05:44:47
China's export and import growth slowed for the second straight month in July, raising fears about the strength of the world's second-largest economy.
Exports rose by 1% from a year earlier, down from 11.3% growth in June, amid slowing demand from key markets.
Meanwhile, imports rose by 4.7% compared with 6.3% in June, indicating that domestic demand was also slowing.
Analysts said the data was weaker-than-expected and may see Beijing introduce stimulus measures to spur growth.
"Trade data has come in dramatically below expectations - the worst export growth number (excluding Chinese New Year) since November 2009 - highlighting the risk that the external environment poses to an economy in the midst of a rapid internal slowdown," said Alistair Thornton of IHS Global Insight in Beijing.
"The government is likely to respond by ramping-up its stimulus efforts, with both monetary and fiscal guns firing."
Those looking for signs of resilience in China's economic data were merely disappointed yesterday, but they are going to be distraught today”
The data comes just a day after China reported that growth in industrial output fell to a three-year low in July.
Industrial production rose by 9.2% during the month, from a year earlier, down from 9.5% increase in June.
At the same time, growth in retail sales during the month also fell short of forecasts.
Analysts said that the weak data had raised concerns that the economy may be slowing faster than previously thought.
"Things really aren't going China's way," said IHS Global Insight's Mr Thornton.
"Those looking for signs of resilience in China's economic data were merely disappointed yesterday, but they are going to be distraught today."
China's economics growth has slowed in recent months. Its economy expanded at an annual rate of 7.6% in the April to June period, the slowest pace of growth in three years.
And there are fears that growth may slow further in the near term.
As a result, Beijing has taken various measures to spur activity.
China's central bank has cut its key interest rates twice since the start of June and reduced the amount of money the country's banks must keep in reserve, in a bid to boost lending.
However, analysts said that policymakers needed to do more to trigger growth.
"With the export sector losing speed faster than expected, the government's current investment stimulus plan looks woefully inadequate," Mr Thornton said.
He added that the government may cut borrowing costs again in the coming months and also increase its investment programmes to help achieve a higher rate of growth.
At 04:44:44 in HeadlinesFrom the moment a gust of wind blew the skirt of the duchess up, to the smiling baby prince and the cheering fans, the Duke and Duchess of Cambridge have been treated like celebrities in New Zealand.
At 04:24:59 in HealthBowel cancer screening uptake needs to improve, campaigners say, after figures showed just over half of those eligible in England come forward for the test.
At 04:21:00 in HeadlinesThe European Parliament is voting on a bill to draw up a blacklist to fight invasive alien species such as killer shrimp and Japanese knotweed spreading.
At 04:16:11 in EnglandBefore being sent to the Western Front, thousands of new recruits were sent to a training camp to prepare them for trench warfare. However, campaigners now fear the remains of this World War One heritage face being irreparably damaged.
At 04:08:14 in EnglandMusic at a UB40 concert was so loud it was "altering heart rhythms" and caused a fan's ear to bleed, it has been claimed.
At 04:00:16 in HeadlinesParents will find out whether they have got their preferred primary school place, as for the first time a National Offer Day allocates places across England on the same day.
At 03:36:11 in BusinessChina's economy expanded by 7.4% in the first quarter of the year, better than what many were expecting.
At 02:55:07 in HeadlinesBirds can learn to choose the best building materials for their nests, according to scientists.
At 02:53:20 in HeadlinesA ferry with about 450 people on board is sinking off the south-west coast of South Korea, coastguard officials say.
At 02:28:43 in BusinessThe US has told China its currency must be allowed to rise if it and the global economy are to see stable growth.
Harvard CitationBBC News, 2012. China export and import growth slows sharply in July [Online] (Updated 10th Aug 2012)
Available at: http://www.ukwirednews.com/news/1445501/China-export-and-import-growth-slows-sharply-in-July [Accessed 16th Apr 2014]
News In Other Categories
Scottish Secretary Alistair Carmichael has promised to deliver greater powers for the Northern and Western Isles.
Parents will find out whether they have got their preferred primary school place, as for the first time a National Offer Day allocates places across England on the same day.
With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
Police have appealed for witnesses after two people were seriously injured in vehicle collisions.
Before being sent to the Western Front, thousands of new recruits were sent to a training camp to prepare them for trench warfare. However, campaigners now fear the remains of this World War One heritage face being irreparably damaged.
Bowel cancer screening uptake needs to improve, campaigners say, after figures showed just over half of those eligible in England come forward for the test.