Containers are seen at Yangshan deepwater port in Shanghai, China, 19 October 2020. REUTERS/Aly Song/File Photo/File Photo
BEIJING, Aug 8 (Reuters) – China’s exports fell 14.5% year on year in July while imports fell 12.4%, customs data showed on Tuesday, marking the largest drop in outbound shipments from the second-largest economy of the world since February 2020.
A Reuters poll of economists had forecast a 12.5% drop in exports and a 5.0% drop in imports.
China’s economy grew slowly in the second quarter as domestic and overseas demand slowed, prompting leaders to pledge further policy support at a Politburo meeting last month.
The government planner also said last week that stimulus measures would be forthcoming, but proposals to expand consumption in the auto, real estate and services sectors have so far failed to convince investors.
Beijing is looking at ways to boost domestic consumption without loosening monetary policy too much, to avoid capital outflows when other major economies hike interest rates to curb rising inflation.
Poor export performance is the latest sign that growth could slow further in the third quarter as construction, manufacturing and services activity, foreign direct investment and industrial profits all slow.
This is affecting economic activity in the rest of Asia. South Korean exports to China fell 25.1% yoy in July, the sharpest drop in three months.
China’s trade surplus rose by $80.6 billion, beating the survey’s forecast of $70.6 billion.
Reporting by Joe Cash. Edited by Sam Holmes
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